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The point is though that the 'free delivery' aspect of Prime isn't actually free, it's paid up front and isn't really cheap.
As an aside I've been in an Amazon distribution centre and it's pretty efficient with very little wasted time or effort involved which keeps the overall cost right down.
I am trying to get facts about how Amazon delivers so cheaply. Any Royal mail parcel starts at about £12. That would mean Amazon at that rate would expect 7 deliveries a year from Prime subscriber. Our house has many times that number of deliveries and I am puzzled.
Buy cheap, stock quantities, sell expensive, create an extremely efficient distribution network, hire delivery drivers on low rates with strict targets and have additional income from Prime membership and P&P rates.
I don't see it as particularly cheap, might seem so at point of delivery mind, but as very efficient and effective. Amazon's USP is speed of delivery, order by 5pm Friday and you've got it Saturday afternoon - convenient to the customer and a level of service currently unachievable by a third party delivery service such as Royal Mail or DPD unless you pay a significant cost for courier / next day type service.
NHS service is free at the point of use because you can walk into an NHS hospital and get the treatment you need without paying anything towards it.
However Amazon delivery is a paid for service, there's an annual fee specifically for it. Try ordering something from Amazon and getting it delivered without a paid Prime membership or paying for delivery. You'll be disappointed.
I only really use the deliveries and rarely, if ever, use the movie / TV service, I'd think most subscribers are the same. All about convenience for me, I know I'm paying for the 'free' delivery and that I can get the same product cheaper elsewhere but I do it with my eyes open and under no illusion that anything's really free.