AMZN to Pay Amazon Prime Members Who Accept Slower Shipping

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Amazon (AMZN) is willing to pay members of its Prime service that accept slower shipping.

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AMZN is willing to give Prime members $1 to use on Prime Video if they accept no rush shipping for an item. An Amazon Prime membership cost $99 and gives Prime members free two-day shipping, reports Time.

It’s unclear why AMZN is offering Prime members money not to use two-day shipping, but it could be that the feature is costing the company. The online retailer reported a larger loss than what was expected for Q2 2014 and shipping expenses were up to $2.4 billion from $1.8 billion a year ago, Time notes.

“Amazon has backed itself into a corner with Prime and consumers are now overusing the service because it really is too good to be true,” Sucharita Mulpuru, an e-commerce analyst at Forrester Research, told InternetRetailer.com. “It’s a fabulous deal for customers and bloody expensive for Amazon.”

AMZN shares were down 2% as of Friday afternoon.

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Article printed from InvestorPlace Media, https://investorplace.com/2014/08/amazon-amzn-amazon-prime/.

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