I recently noticed that Amazon provides one more shipping option to Prime members "No-Rush". This obviously saves them some costs of the next-day shipping commitments to Prime members. Due supply chain management will allow them to club purchases and optimise shipments and inventory levels in warehouses.
And to entice customers to this option, Amazon is even offering ₹15 cash back for each such transaction.
For customers, this is free cash inflow. I'm sure that 80% transactions if not more will soon fall into this category. Bhartiya folks love free cash. We have chosen Prime mainly for the online movies than the fast shipping.
Many like me will now be aiming to make up the annual prime subscription with these cash backs itself. Not sure if Amazon will share alongwith their financial results if this is reducing costs or increasing it. Time will nonetheless tell us customers, by way of whether Amazon retains or further increases the cash back with the scheme, or perhaps scrap or put a cap to the cash back limit to it.
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