Saturday, December 6, 2025

Lose some, gain plenty - the story about Amazon prime - THE BENEFITS OF THE FREE (ALSO FREEMIUM)

Nation building via learning and being the best in business






This is about the strategy of Jeff Bezos at Amazon.   Sales were declining and their team was a at loss on how to arrest the decline.   After long brainstorming and research they found out that shipping was causing the friction that rubbed sales the wrong way

So they established the Amazon prime.  For only $__ subscription, membership a year, you could have unli shipment.    Before customers buy 1 to 3x per year.  But with the Prime membership, the customers bought on the average 27 x a year.   Translating into 27x more sales

Amazon loses $20b a year on the free/reduced shipping cost.     But it is accelerating its sales.  Now the prime is into video streaming  now an enemy of Netflix.  The customer base is a rich mine for other businesses.    

Google is in freemium model.  It does not charge for the search engine but makes up for ads and maybe google maps  and YT ads.!

So what could be causing friction in the company.  We hypothesized it could be the _ permit  or ___certificate.  It may be made FREE - DEDUCTED FROM THE SERVICE or even processed by our staff.   For the lot sales, we may make the transfer fee FREE.

No comments:

Post a Comment