So how is Amazon making money on this deal again?
Category: Blog

I recently went ahead and broke down and paid for an Amazon Prime membership. I didn’t originally continue my membership after the trial because I didn’t think it saved me enough money to warrant it. Boy was I ever wrong about the savings and I sure am glad I went ahead and got the membership.

Case in point, I bought a new Pelican case on Amazon. Yes, I could have gotten it with free super saver shipping, but I am an impatient person when it comes to online orders. When I buy something, I expect to have it without much delay (5-10 days is unacceptable to me, two day shipping barely cuts it). So, I went ahead and got the next day air shipping (cost me $3.99 w/ my prime membership).

After getting the shipment notification, I notice the billed weight is 55 pounds! We won’t even go into how a ten pound case can have a shipped weight of 55 pounds (maybe it’s because of the size box w/ minimum weights or something), but next day air shipping on that much weight is freaking outrageous! Don’t believe me, look at the below screenshots. Now of course, Amazon I am more than sure gets massive volume shipping discounts, but even if it’s a 50% discount on the retail rate they still lost money on my Amazon Prime membership (only $90 by itself).

So, my question is, how does Amazon make money on this deal again?

UPS screenshot

UPS screenshot

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