A few months ago, Amazon.com started a new service called "Amazon Prime." For $80/year, you get free two-day shipping or the option to have something the next day for $3.99.
For the last few years, Amazon has had free shipping for orders over $25, so I didn't think it was a great option for me. I order from Amazon all the time and I don't mind waiting an extra day to receive something. Like most people, it takes me a while to get to things...
But because I order so much from them, I had the option of trying the Amazon Prime service free for three months. Like a lot of free offers, if I don't cancel, they extend the subscription and bill me.
The free trial ends today and I've decided to continue the service at full price.
I don't know if Amazon is losing money on shipping things via two-day UPS or not, but I do know that I've actually increased purchases with them since getting on Amazon Prime. There is no better way to get books, CDs, and other products quickly and easily.
Why would I go anywhere else?
And not only do I buy stuff for myself from Amazon, I've also bought a lot of gifts for friends and business associates. I see something I think somebody would like, order it, and let them know to watch for a guy in the brown van to show up in a couple of days. It's been great for both personal and business relationships.
I'm not posting this to encourage you to get on Amazon Prime. I do want you to think what you can offer your customers to encourage repeat and frequent business though. It doesn't take much.