Re:Amazon buys PillPack, an online pharmacy, for just under $1B
by colechristensen on Friday June 29, 2018 @05:57AM
(#17423535)
Was it amazing because of the rate or for other reasons?
The rate seems like it was just imaginary. Their promotion was that Amazon was willing to lose a significant amount of money to gain market share.
Re:Amazon buys PillPack, an online pharmacy, for just under $1B
by DenisM on Thursday June 28, 2018 @06:35PM
(#17421023)
My credit card cash back is 2.00%, your 1.75% promotional rate was losing them money.
Re:Amazon buys PillPack, an online pharmacy, for just under $1B
by misterbwong on Thursday June 28, 2018 @07:50PM
(#17421401)
There were quite a few people taking advantage of this promotional rate. It was a fun time.
Re:Amazon buys PillPack, an online pharmacy, for just under $1B
by dalore on Friday June 29, 2018 @05:10AM
(#17423359)
It's 2.00% but with caveats. Usually max limit per year or such.
Re:Amazon buys PillPack, an online pharmacy, for just under $1B
by collinmanderson on Friday June 29, 2018 @08:20AM
(#17424053)
I have 2% through Citi Double Cash (and yes, it really is 2%, not 1.98%). No caps at all.
Re:Amazon buys PillPack, an online pharmacy, for just under $1B
by mobilefriendly on Friday June 29, 2018 @12:49PM
(#17425706)
They also make money on the data.
As a merchant, it was amazing. They offered promotional rate of 1.75%, which is basically impossible to beat for any small business.
For context, Square and most "simple pay per swipe" merchant service providers charge 2.75%. If you go out and get a really good deal from a intrchange+ provider, you might be able to get your rate down close to 2%. But Amazon Register got you below that with significantly less hassle, no subscription fees and a $0 equipment cost.
My wife used it at her small business for a year, and during that year I loved getting proposals from other banks and merchant service providers. Many had an offer like, "Let us audit your merchant fees, and if we can't beat them, we'll give you a $200 gift card."
I always gave them the opportunity to try, but with the caveat that there was no way they could beat our current rates, and I wasn't going to take their money when they failed. Mostly, I just never heard back after they realized I wasn't BS'ing about the fees we were paying.
If Amazon Register had been more widely promoted, they could/should have been able to get every credit-card-accepting small business in the country signed up at least for the promotional period. I'd love to see some kind of post-mortem to explain why they didn't.