Archive for February 28th, 2017

Amazon, ObamaCare … and the “power of free”

February 28, 2017

Since “repeal & replace” is in play, it’s time to update a prior ObamaCare posts …

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Everybody knows that Amazon’s free shipping program has been a resounding success.

The free shipping program’s success was highly predictable based an an apparently inadvertent “matched market test” that Amazon did.

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Early-on, Amazon launched  free shipping on $25 orders in the U.S. and sales skyrocketed.

In the UK, Amazon launched “nominal shipping” (think, 99 cents) for orders totaling the equivalent of $25.

Sales increased … but only by a fraction of the U.S. sales gain.

Proof-positive of the “power of free” … and evidence an equally important dynamic: there’s a big difference between “free” and “almost free” … when you slip a price on something – even a small one, people recoil.

Now, what’s the link to ObamaCare?

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