Re:I gave Amazon a key to my house and regretted it
by bdowling on Thursday December 07, 2017 @05:51PM
(#15875136)
Amazon is charging $249 (plus installation costs) for the Amazon Key In-home Kit, which includes the smart lock and cloud camera. That’s more then the cost of a bolted-down box with a smart lock. The reason Amazon prefers this is described in the video. For Amazon this is a literal “foot in the door” and a path to selling you other services like cleaning and dog-walking. It’s not just about delivering packages.
Re:I gave Amazon a key to my house and regretted it
by jethro_tell on Thursday December 07, 2017 @04:57PM
(#15874735)
I think the subset of people who would have a box installed and never use prime again and the people who would give away a key to their house for 1 delivery is pretty small.
At $50/box, I can outfit 20 million homes for 1 billion which is a 1x cost. If they are really loosing 7b on package theft every year, the one off loss of box cost should start offsetting that right away. A quick google shows that there are 90 million prime members in 2017, so they could do a box per prime member and pay it off in 9 mo. The second year they just save 7 billion. Am I missing something?
You can't charge for the box upfront without killing customer acquisition - most companies give new customers a discount, not a charge - and if you give the box away, you're $50+ in the hole for a customer who may never shop with you again, and you've got to charge more to recoup the costs of the box.