Thursday, December 17, 2009

Amazon Prime: Free for One Month, $9.99/mo After That


I signed up for Amazon Prime for the same reason anyone signs up for Amazon Prime: free 2-day shipping. I needed a birthday present for dear old Dad, and I needed it fast. Amazon didn't let me down. I wrote myself a note to cancel it at the one-month mark, but of course I forgot.

Then the holidays arrived.

And that's when Amazon Prime turned out to be worth its weight in gold - or at least well worth the $9.99 a month.

The thing about shopping on Amazon (which I do fairly frequently) is that when you buy from multiple sellers, you pay multiple, and varying, shipping rates. But when you buy Amazon Prime-approved products (which is about 75% of their inventory), all your shipping is free (for 2-day shipping). Just from the shipping savings on the items I've bought as Christmas gifts, this month's AP has already paid for itself.

What does this tell us about free trial leading to purchase?

It tells us, for one, that the free trial works in a consumer's moment of desperation (for me, my need for speed). It also tells us that, if the product is a good one, the free trial is well worth the company's investment, because people will continue to pay for things that provide them a service they need or enjoy. It also tells us as consumers that "falling for" the free trial doesn't always end in heartache and mystery credit card charges.

Sometimes, it ends in birthday presents being delivered - on time - to the ones we love. For a very reasonable price.

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