Here’s a clue. Membership in Amazon Prime costs $99.00/year. For that, consumers get free two-day shipping of everything they buy.
Morningstar estimates these members “cost” Amazon $721.00 per year in “free” shipping expenses — for items as bulky as soft drinks and potting soil. (And yes, they now upcharge $5.99 for the real big stuff.) But so what. Prime members spend about 75% more than non-prime shoppers – an additional $900.00 per year. Is it a wash? Not yet, but…
Source: Internet Retailer