X100 or wait for X100s?

Started Feb 11, 2013 | Discussions thread
David V
David V Senior Member • Posts: 1,181
Re: Return policy works fine for Amazom

94 wrote:

JoeRadza wrote:

David V wrote:

misterpepper wrote:

If Amazon sells you the X100s for $1300 and ships it to you for free, you try it out without any real intention of buying and, after a couple of weeks ship it back to them on their dime, leaving them with a camera that after the expense of inspecting, cleaning and restocking is only worth around $1000 as a used camera, how is that any different to them than you having just stolen $400+ cash?

This is a ridiculously self righteous load of crap! If Amazon's policy allows for you to buy with confidence, sight unseen, in order to try a product, then they are willing to deal with the logistics and costs associated with that transaction for the greater good of increased overall revenue. No one is stealing cash!

Believe me, companies like Amazon conduct deep analytics on these types of policies and their affect on overall revenue/profit, and if they were not making more, or even losing money due to this policy, it would not exist. Period.

Policies like these create brand loyalty for shoppers. I buy things from Amazon from time to time that I want to try and have no intention of keeping. At times, I get the item and it far surpasses my expectation and I do end up keeping it. In addition, because of their great prices, free two day shipping (I am a Prime member) and their great return policy, they are the first place I check when I am going to buy anything online. That is brand loyalty and they get over ten thousand dollars a year in business from me every year!

You are correct in Amazon analyzing costs etc. But, the next time you want to "try" out a product, don't you think it would be the more ethical approach to rent before buying? Not saying what you're doing is unethical, but until I read a secret Amazon memo saying this is a company policy, you are indeed raising prices. That said, it's hard to figure how widespread the practice of "trying" is.

Amazon seems to be happy with things as they are, as are their stockholders so I'm not sure what your problem is with any customer who uses the return policy. That policy is drawn by Amazon and they are free to redraw if their margin is adversely impacted.

I think there is one aspect which you have not considered. Amazon reaps a considerable amount by controlling a customer's money betweem the initial deposit (the purchase) and the eventual withdrawal (the return payout). That amount, often called "the float" is a 'hidden' benefit for Amazon or any other retailer. While it may not seem to be a significant number when you only consider a single $1K purchase,; when multiplied by the billions in cash throughput under Amazon's control it becomes very significsnt indeed. Simply put, Amazon makes interest on every dollar under their control for as long as they have it would not surprise me to find that more than half of each quarter's profit is derived from that interest rarher than from the margin created by the price differential of their products. Amoazon is more a bank than a retail store. They trade in money primarily and not the items that so upset your mores'.

This is exactly right, along with the fact that they also make money on shipping costs as well, unless you're a Amazon Prime customer (free two day shipping) who buys a lot of products throughout the year.

A company like Amazon does a lot of analytics on their P&L and they have this down to an exact science, right down to predictive behavior of customer segments through both demographics and psychographics as well as your very own personal history with them.

It's not Joe that has the problem here.

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