Monday, July 31, 2006

Why Amazon is losing money...

Okay, I admit, I am a deal hound. I hate to shop, but I cannot resist a good internet deal. The other day, there was a great sale at Amazon.com. I bought these Martex bath towels for $4.49 (I saw them for $11.99 today at Costco). And Amazon had a free hand towel deal, so you get both for only $4.49. Add on top of that the $25 off $125 bath coupon and free shipping with $25 purchase. I ended up spending about $45 for 10 towels and 10 hand towels. A few days later, I got a notice that we had a box at the post office from Amazon. So David went to pick it up. Lo and behold, there was 5 boxes there. And the next day, I got 14 more boxes frm Amazon, one for EACH towel! And Saturday, I got the final box. So for 20 towels and $45, I got 20 shipments. No wonder Amazon is losing money! They shipped this Airborne Ground and I cannot imagine that each box is less than $2 for postage. Add on top of that the box, the shipping label, the packing and pulling the product in the warehouse, and I bet they spent way more than they made. As a business owner myself, I did the math. And I figure, maybe they lost about $20 to get me my towels. If we shipped our customer's orders this way, I am sure Maya Road would not be around anymore!

5 Comments:

Blogger ann said...

interesting story. i just told a friend about that and he laughed at each individual towel having its own box :x

8/01/2006 12:14:00 AM  
Blogger Penny said...

Wow...and now you have to deal with getting rid of all those boxes! At least you got an awesome deal. Why are towels so expensive, anyway?

8/01/2006 06:38:00 AM  
Blogger Shirley said...

Yeah, ordered from Amazon before and not sure about their shipping each thing separately either. Go figure. SCORE on the towels though! :)

8/01/2006 06:56:00 AM  
Blogger Jen said...

I've lost a whole lot of respect for Amazon.com after this. Mis-management? I think so! WOW!

8/01/2006 08:12:00 AM  
Blogger Joanna Bolick said...

That is crazy!!!! TOo funny! I think maybe they REALLLLLLLY wanted to get rid of those towels?

8/02/2006 07:31:00 PM  

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