Amazon Prime Is an Economy-Distorting Lie
A new antitrust case shows that Prime inflates prices across the board, using the false promise of 'free shipping' that is anything but free.
Hasnain says:
“If Racine succeeds in his suit, it unravels the whole scheme. As one legal analyst told me, “Let's say a product today is sold for $10 on Amazon with 'free shipping'. If Amazon is forced to unbundle the FBA fee from the product price then it would cost $6 + $4 shipping. Prime makes no sense in this world unless Amazon again decided to subsidize Prime.” Amazon, as big as it is, doesn’t have $25-30 billion of cash flow to make that happen.”
Posted on 2021-05-31T07:53:21+0000