Unusual move. I wonder what percentage of folks who sign up for this program will get their money's worth?
WSJ.com - Amazon Launches 'Unlimited' Free Shipping, For a Fee:
Amazon.com Inc. introduced a new shipping program offering unlimited two-day shipping for customers willing to pay an annual fee.
The Seattle Internet retailer said on its Web site Wednesday that the program, dubbed “Amazon Prime,” will charge $79 a year for “all-you-can-eat” express shipping. Members of the program get unlimited two-day shipping for free on more than a million items, and can upgrade individual orders to overnight shipping for $3.99 each.
The company normally charges $9.48 for two-day shipping on a book and $16.48 for overnight. Shipping charges on electronics and other items can be higher. Amazon said members will be able to share the benefits of the program with up to four household members.
Amazon will continue to offer free “super saver” shipping on most orders over $25. Those orders are shipped via ground, and can take five to nine days, according to the site.
Amazon, which is slated to report fourth-quarter results after the close of trading Wednesday, said it expects the program to “be expensive” for the company in the short term, but cited its long-term strategy of winning customer loyalty.
{Business}
