Pricing and Bundling: A New Paradigm?
If you’re an Amazon Prime member (and given the numbers Amazon reports, you probably are), you’ve got a bundle of benefits that go far beyond the basic free two-day shipping that was the original premise and promise.
The Amazon strategy that has played out over the past few years reflects an intriguing approach to pricing — bundling a suite of benefits that each on its own has substantial value — to justify the overall annual Prime service fee. Aside from the free two-day shipping, there’s a wide array of music, data storage, and free movies — as well as pricing and delivery benefits at some Whole Foods locations. These are not just trifles — they are substantial benefits. As a Prime member myself, after my first year I did the math to see if I saved money — but I don’t bother any longer because of all these other benefits. Read the Article