News Feature | August 8, 2014

Amazon Incentivizes Customers To Choose No-Rush Shipping

By Brianna Ahearn, contributing writer

No-Rush Shipping For Amazon Prime Customers

Amazon recently added a new incentive for its consumers when it comes to shipping, an article in the Huffington Post reported.  The company has announced Prime members who choose “No-Rush Shipping” for any order will receive a $1 credit to be used on Amazon’s Instant Video library on most titles. The credits for videos will expire, but they can accumulate, meaning a Prime user could use several credits to rent or purchase videos that were over $1.99. No details have been released about whether the incentive is for a limited time.

In January, Business Insider reported the retail giant has near 20 million Prime subscribers. In March 2014, Amazon announced an increase in the price of the Prime program, raising the cost from $79.00 a year to $99.00 a year, citing higher shipping costs as the reason. While the price went up, the free two-day shipping offered by the program stayed. The new incentive program is likely a reflection on the retailer trying to meet consumer demand for prompt service, while still maintaining shipping adhering to the customers’ wishes. The No-Rush Shipping offer would extend the consumer’s wait for a package from two days to five to seven business days. However, for consumers who don’t need their package right away, the credit is considered a likely good choice for some Prime members, particularly as most new releases or television episodes are $1.99-$4.99 in price. Amazon Prime Instant Video is available for streaming on devices and game consoles such as the Wii U, Roku, and Playstation 3, and is one of the more popular features for Prime members.

This new move by the retailer allows consumers to opt for a slower shipping method on items that aren’t time-sensitive and benefit from their choice. Prime members already have access to a wide library of streaming television and movies, but the $1.00 credit will be applied to videos outside the Prime library, such as new releases. The company has cited HBO videos as an exception to the offer. This isn’t the first change made for Prime members in regards to shipping. The company has recently rolled out same-day shipping and Sunday delivery in a number of cities, including Philadelphia. The cost for same-day shipping is an additional $5.99 but is available seven days a week. The new No-Rush program appears to be another way Amazon is trying to meet consumer needs while dealing with increasing shipping prices. Amazon also opened 15 “sortation” centers in several corners of the United States, where workers sort packages by zip code and then get them to local mail carriers.