They could have made another $5 per 10 pizzas after order #1 by just delivering the pizza to themselves and sending the same boxes back out in the next delivery, and so on.
Thank you, this was a fun rabbit hole to dive down. That blog also has a well-argued article about Zero Interest Rate Policy which relates to the doordash story: https://www.readmargins.com/p/zirp-explains-the-world
If you want to fight the VCs, you have to pull stunts like this. If they want to destroy local infrastructure because "free market", in an attempt to secure monopolies for themselves, then let them operate in a free market.
I said what I meant: most VC-backed startups could not survive in a real-world environment. Thank you for highlighting the distinction. Note that a free market isn't necessarily an unregulated market (see: Adam Smith).
I feel I should point out that USPS has a lower rate for postcards (currently $0.61), so the threshold might be a bit lower.
I know that this is tongue-in-cheek and would be pretty funny to receive, but it isn't an apples-to-apples comparison. The experience of getting a little message printed on receipt paper is nothing like the experience of receiving a note or card in the mail. Through the mail you receive something physically from someone with their handwriting and some personality to it. Getting the Amazon message is more like printing out a text message on crummy paper.
Also, I don't have Prime, so it definitely isn't cost competitive for me anyway.
Reminds me of the old collect call trick. Rather than state your name when prompted you transmit a short, perhaps even coded, message. Then the receiving party declines the call.
I've started sending paperbacks instead of greeting cards when someone I know needs a get-well-soon card. In stores around here, greeting cards are often $7ish + postage. I can frequently ship a paperback with a gift receipt for $5 total. I include a gift message on the gift receipt, and choose a book I think someone might like to read while they're out of commission.
I guess it's a bit like postal arbitrage, if I accept the cost of greeting cards themselves as part of the cost of the activity.
To the extent that anyone has commented much, those who have commented had very positive reactions to what amounts to a book recommendation and a copy of the book I'm recommending along with a little note.
I get the point, but this seems pretty out of date. Seems like it needs a [2025] (?) at least.
A couple of these are still valid with Prime, but most of them are Amazon Fresh items ($9.95 service fee for orders under $50), or out of stock, or the price is now way more.
Ah, luckily the climate doesn't mind that oil was extracted, a phone case was produced out of it, shipped from China, to end up not even being used but just as a "greeting card".
> While nearly three-quarters of the world’s cargo is carried by ocean-going ships, road vehicles like trucks and vans make up the majority, 65%, of freight’s emissions. Most ships burn fossil fuels and emit carbon, but they carry large amounts of freight at the same time, making them the most efficient way to move cargo. Road freight, however, can emit more than 100 times as much CO2 as ships to carry the same amount of freight the same distance. Road transport is also a fast-growing sector—80% of the global increase in diesel consumption can be attributed to trucks. E-commerce and home delivery are two reasons for this growth.
The distance from Shenzhen to Long Beach is some 300 times the distance from Long Beach to Pasadena, depending on where exactly in Pasadena and which route you take. The CO2 emissions factor for a truck is some 10-100x that of a container ship. The exact ratio depends on what kind of truck, and what scope of emissions are being included. The more one accounts for, the more it will favor the boat. But overall, the emissions from the oceanic leg of the trip are probably anywhere from 1-3x those of the truck.
You have to normalize for package volume. There’s one ship involved, how many delivery vehicles and other auto related logistics until that whole shipload has reached its final destination?
The distance the boat has to cover is 11800 kilometers, and the truck covers only 54 kilometers. Taking that average of 12 times more usage from the table of sibling comment means the ship is still 20x worse.
I did some napkin math on this as I recently picked up a 3D Printer and wondered the environmental comparison to print-at-home vs pick something up at the store and I was surprised. Had some help from Claude but "last mile delivery" is absolutely where the majority of the kWh is burned in the supply chain.
Container ships use ~0.015 kWh per ton-km[1] and a car is ~1.35 kWh/km.
If you go to the store and end up getting >10 things it becomes "worth it" from an energy standpoint. Anything less printing at home seemed to be more economical... Not an expert though just saying it opened my eyes to how inefficient "last mile delivery" energy consumption is.
> In 2022, researchers from the University of Michigan and Ford Motor Co. modeled a single 36-item grocery cart to compare greenhouse emissions from an e-commerce grocery delivery and a traditional trip to the store to get the same items. Gregory Keoleian and colleagues at the university's Center for Sustainable Systems found that using an electric vehicle to pick up groceries could cut emissions by as much as half, compared to a gas-powered vehicle.
> They also found that home delivery could be an even better option. That's because with a delivery vehicle, orders are often clustered, with a driver dropping off not just your groceries, but also hitting neighbors during the same run. "Delivery is actually going to be more efficient in general than driving yourself in a gasoline SUV to the store to pick up your groceries," Keoleian says.
> A recent USDA survey found that in 88% of U.S households, people hop in their car to buy groceries, driving an average of 4 miles to their preferred store. ... All these car trips result in carbon pollution: over 17 million metric tons of CO2 come from car tailpipes just from driving back and forth to the grocery store.
> While it is common for the consumer to associate convenience in the food industry with increased greenhouse gas emissions, this is not always the case. Results from a 2013 University of Washington study indicate that grocery delivery has the potential to reduce carbon emissions anywhere from 20 to 75 percent (Ma 2013), while another study out of Finland found the potential for grocery delivery to reduce emissions by up to 87 percent (Siikavirta et al. 2002).
> Buying goods online can be better for the environment than in-store shopping for one fundamental reason: With online shopping, a single truck or van can replace multiple car trips, by multiple households, to stores. It helps to think of it this way: In most of the United States, almost every purchase means putting a vehicle on the road—either your own or a delivery company’s.
Last time I checked (a few years ago), it was cheaper to send letters and small packages from South Korea to Germany than from Germany to Germany. The delay was also not that big (maybe 1-2 weeks instead of 3-5 days). I already envisioned an arbitrage business for this: a simple page where people upload their non-urgent letters as PDFs, and I just print and mail them from Korea.
In Poland, OLX (basically equivalent eBay) commonly has promotional campaigns, where you can buy something from a select category with 1 PLN shipping to box machine (around $0.30).
So people figured out, that you can abuse it to send anything to anyone in the country. Just create a fake listing for 1 PLN, let the receiver "buy" it (there is some extra service fee, but like $1) and there you go - probably the cheapest shipping possible, much cheaper than regular ~$5-7 box machine package.
Don't give money to amazon that is better spent on an amazingly efficient postal service. Amazon is subsidized by imaginary money until they put all their competition out of business(including USPS).
My honest question is: If you pull shenanigans like this, isn't it actually making Amazon burn through said imaginary money, thus hastening its demise? The cost of delivering a potato has to be on the order of at least a couple dollars.
Assuming it's the US we're talking about, the federal minimum wage is $7.25, which means that if every worker involved is paid at the minimum wage, you incur a cent of labour costs every 4.97 person-seconds. AFAICT, most Amazon workers are paid substantially higher than the federal minimum wage. And that's just labour costs.
While Amazon is efficient, "fractions of a cent" is probably the wrong order of magnitude for even the most efficient order.
I think they let you (not YOU necessarily, but the proverbial you.) get away with stuff because they know your habits and you probably make more money for them than you realize.
I can almost guarantee that everyone mentioned in that blog post is a habitual Amazon user. They're all renewing Prime each year at full price and making a ton of regular purchases. The family has even turned on the FOMO by making Prime a family social network with social pressure to stay. I see it as a self-own, personally.
Edit: I'm taking part of this to the root of the thread
Can you explain? Amazon is wildly profitable, and while AWS is far higher margin than their retail businesses, everything I can find suggests their retail segment also has a healthy operating margin.
I hate USPS, and will not be doing anything to benefit them until they offer a way to limit my deliveries to once a month, and opt out of anything that has "or current resident"
At the very least they should charge more for bulk mail, not give out discounts.
In Canada, you can place a red dot (or write no unsolicited mail) on your mailbox and they will withhold delivering anything not directly addressed to you.
I was shocked when I moved to SF and found out there was no way to opt out of unaddressed mail (or "current resident").
The USPS is a government-run spam delivery service that there is no way to opt out of. Those of us who do banking and other administrative tasks online would be better off if the government shut it down completely, or better yet subsidized it slightly so it doesn't have to deliver spam to survive.
But as it is, I don't see any good reason to have any more respect for USPS than I do for any other spammer.
Funny seeing this. I've been working on a site to allow people to send a letter as cheaply and conveniently as possible. I actually think letters (physical) are a great way to make an impression, often times much more so than an email. Had never considered sending an actual object lol.
At current scale (which is very small), the cheapest I can get it down to without losing money is $1.55 per letter (postage, paper, print, envelope, stripe fees, misc. hosting fees, etc.). Sadly, I have no way to compete with a $0.25 lime!
I've used something like this list to get "over the hump" for $35 to reach free shipping without prime.
It's horribly annoying to have a product that is $34.99 and you want it, but it'll cost shipping unless you get the damn Volkswagen screw; and then Amazon ships them individually anyway.
Just play their stupid game. My wife does this all the time, buys random items just to go past the free shipping range, then the item goes into trash (or is returned, if possible).
Even sellers started doing this, but instead of selling random items, they sell "extra hardened packaging material" conveniently at $1, $2, $3... prices. Of course when item arrives, no extra material to be seen. When questioned, one of them said "well, the package had cardboard box - that's it, wink wink, please do not report us".
The DoorDash pizza arbitrage comparison is apt. Both cases expose the same fundamental thing: venture-subsidised pricing creates artificial market conditions that clever people will exploit.
What I find interesting is how long these windows stay open. You'd think someone at Stamps.com or UPS would notice the pricing anomaly, but large organisations are often too siloed. The team setting international rates probably doesn't talk to whoever monitors small parcel economics.
The author mentions making a few hundred dollars - but the real question is scalability. At what volume does this become attractive enough for the postal services to close the loophole? There's probably a sweet spot between "not worth their attention" and "actually profitable."
The lowest I found is two clip-on CAT5e cable termination jacks for $0.80 + 0.08 tax. Available in a rainbow of colors and shipped free to Seattle by Sunday if you order in the next 10 hours.
https://www.amazon.com/dp/B08T63ST97
There are also things on eBay with a starting price of less than a dollar with free shipping that never get bids. I "won" two auctions like this the other week for brand new USB-C cables, each of them costing me 13 cents shipped.
I have no idea why sellers would do this with eBay fees and USPS small package shipping costing well over 13 cents.
I canceled prime ~8 years ago because where I am, half the stuff I wanted was considered an “add on item” that could only be shipped free if you had > $35 of other stuff, which is a complete scam because you get that without prime.
Maybe that was just for me (in a large Canadian city at the time) or maybe they don’t do that anymore?
I haven’t considered getting prime since, it would be a lot more interesting if it actually provided the shipping terms they advertise.
To the author, would you consider changing the “key photo”? I sent the weblink to a friend, and the key photo in iMessage is the pregnancy test and they got the wrong impression about the site/prank. Pick the lemon or can of beans perhaps?
All of these items appear to have received the HN hug of death. They're all showing as unavailable for me, who just wanted to drop a friendly lime hello to a friend across town.
I'm super surprised there is still free shipping for small things. In (some) other parts of the world, they will charge significant delivery fürs for anything below $50 or so. It basically changed during Covid, and since every shop is now doing it, there's no competition on that.
well, yeah. That's what the phrase "marginal cost" means: if it costs $x to do something N times, and $x + $y to do something N+1 times, $y is the marginal cost.
It looks like the billing address restriction was a "thing" years ago, but is simply too impractical for modern day e-commerce. People want to do gifting, or get things delivered to temporary accomodations like vacation spots. They are relying on approaches like heuristics (sudden purchase for something expensive going to an unusual address), plus CVV verification to help ensure that the purchaser physically has the card (still allows theft, but adds a layer).
You have to provide the billing address for the card. But you don't have to ship there.
Plenty of people ship to the office. I buy stuff for my parents from time to time. When I'm on vacation, I might ship to the hotel or a friend I'm visiting or ...
Pretty sure if you buy something as a "gift" (which is what allows the inclusion of a message) then you can send it to a different address. I rarely use Amazon and never have used it to send a gift so could be wrong.
> Doesn't Amazon shipping have to go to the billing address on the credit card?
No and that would be crazy. I'm not aware of any e-commerce site that has a restriction like that.
> Being able to purchase on a credit card and have it sent anywhere makes it that much easier to use stolen credit cards.
Well, it's probably one fraud signal among many, but it's absolutely not generally prohibited. I've sent things from Amazon to other people (or to myself while staying in a hotel), and other people have sent things to me, many times.
That's right, you're also cementing Amazon's control of the US economy. Both by doing more business there, and by spending time on that site which will lead to you doing even more of your business there. Not to mention having to be an "Amazon Prime" person to begin with.
This may sound weird to some, but - you should really avoid using Amazon where possible.
A cheaper option (if we’re going to do away with the restriction that the post card should be sent by the sender) would be for the recipient to hook their printer up to the network, and just send bits.
It is better, actually, you can even scan a real hand written post card.
We could even make a standardised protocol, where anyone could send messages to any connected printer: like letters, except a facsimile of the original document is produced. I'm struggling to think of a catchy name for this, though.
I think it depends. I bought a Dell 1700 laser printer for the low price of $0 at a second hand store about 19 years ago. They said it was failing to pull paper from the tray, and I could have it if I wanted. I fixed the rollers responsible for feeding (turned the rubber wheels inside out), and used it for another 10 years without issue. Sure, toner costs some money, but an off-brand toner cartridge is $25, rated for 3000 pages. I have also needed to replace the drum, and at one point picked up a second 1700 into which I had to put the old drum and toner after some failure or another.
I'd estimate I've put in $200 at most, and probably put 15-20k pages through it. Still prints just fine. It doesn't have color, or networking features, but I can share it on the network from the connected computer. I'm not sure they make anything this reliable these days, but I bet there's quite a few old laser printers floating around still.
I can almost guarantee that everyone mentioned in that blog post is a habitual Amazon user. They're all renewing Prime each year at full price and making a ton of regular purchases. The family has even turned on the FOMO by making Prime a family social network with social pressure to stay. I see it as a self-own, personally.
$0.25 - Lime - Amazon Fresh -FREE 2-hour delivery on orders over *$100*
Other products have similar shipping restrictions, or the prices are higher than claimed.
Also, most of the cheapest products (at least before tariff effects kicked in) don't allow customized messages that postcards allow, for obvious reasons.
A more recent question I have is how Amazon is skipping DeMinimis fees which are now massive on 50 cent or $1 items from their "Amazon Haul" which come from overseas
It arrives in a few weeks by Amazon's own carriers, not USPS/UPS/FedEx
Who is paying the $80 DeMinimis fee on the $1 cable I got last week from China?
Indeed. Ponzi attempted to buy International Reply Coupons in countries where they were cheap, then exchange them for stamps in the US and sell the stamps for much more than the purchase price of the IRC.
Of course, it didn't work. There wasn't anything fundamentally wrong with the arbitrage scheme, but the profit per coupon was way too low to make it feasible as a business. Ponzi pivoted to paying off older investments with new investments, and the rest is history.
This story comes to my mind.
A pizzeria owner made money buying his own $24 pizzas from DoorDash for $16
https://www.theverge.com/2020/5/18/21262316/doordash-pizza-p...
Note: the Verge article links to this blog post, describing the situation in more detail: https://www.readmargins.com/p/doordash-and-pizza-arbitrage
They could have made another $5 per 10 pizzas after order #1 by just delivering the pizza to themselves and sending the same boxes back out in the next delivery, and so on.
Thank you, this was a fun rabbit hole to dive down. That blog also has a well-argued article about Zero Interest Rate Policy which relates to the doordash story: https://www.readmargins.com/p/zirp-explains-the-world
Thanks for sharing, i enjoyed reading it, although it is paywalled: http://archive.today/H5FRo
If you want to fight the VCs, you have to pull stunts like this. If they want to destroy local infrastructure because "free market", in an attempt to secure monopolies for themselves, then let them operate in a free market.
> then let them operate in a free market.
I think you meant to say "operate in a market that is regulated in precisely the way they want it to be".
I said what I meant: most VC-backed startups could not survive in a real-world environment. Thank you for highlighting the distinction. Note that a free market isn't necessarily an unregulated market (see: Adam Smith).
VC Fund My Life!
The appropriate musical accompaniment: https://www.youtube.com/watch?v=pbH-U2b_EsQ
I was hoping this would be a rickroll.
Stories like these make me want to experiment with paying cash to mates to drive us to and from the airport.
We have to pay for the ride either way - may as well put it in a friend’s pocket.
Tempted to vibecode a little tool to manage the ride requests..
I feel I should point out that USPS has a lower rate for postcards (currently $0.61), so the threshold might be a bit lower.
I know that this is tongue-in-cheek and would be pretty funny to receive, but it isn't an apples-to-apples comparison. The experience of getting a little message printed on receipt paper is nothing like the experience of receiving a note or card in the mail. Through the mail you receive something physically from someone with their handwriting and some personality to it. Getting the Amazon message is more like printing out a text message on crummy paper.
Also, I don't have Prime, so it definitely isn't cost competitive for me anyway.
Reminds me of the old collect call trick. Rather than state your name when prompted you transmit a short, perhaps even coded, message. Then the receiving party declines the call.
https://www.youtube.com/watch?v=9JxhTnWrKYs
"You have a collect call from MomWe'reAtTheArcadeCanYouPickUsUp?
Would you like to accept the charges?"
I agree in general, but as a one-off thing I'd very much enjoy getting a lime with a message saying "this was cheaper than sending a letter myself"
I've started sending paperbacks instead of greeting cards when someone I know needs a get-well-soon card. In stores around here, greeting cards are often $7ish + postage. I can frequently ship a paperback with a gift receipt for $5 total. I include a gift message on the gift receipt, and choose a book I think someone might like to read while they're out of commission.
I guess it's a bit like postal arbitrage, if I accept the cost of greeting cards themselves as part of the cost of the activity.
To the extent that anyone has commented much, those who have commented had very positive reactions to what amounts to a book recommendation and a copy of the book I'm recommending along with a little note.
I get the point, but this seems pretty out of date. Seems like it needs a [2025] (?) at least.
A couple of these are still valid with Prime, but most of them are Amazon Fresh items ($9.95 service fee for orders under $50), or out of stock, or the price is now way more.
Ah, luckily the climate doesn't mind that oil was extracted, a phone case was produced out of it, shipped from China, to end up not even being used but just as a "greeting card".
Why yes, I am fun at parties.
The oil used for shipping from Shenzhen to Long Beach is completely trivial compared to what the truck used getting it from Long Beach to Pasadena.
I'd love a napkin math calculation at this.
https://climate.mit.edu/explainers/freight-transportation
> While nearly three-quarters of the world’s cargo is carried by ocean-going ships, road vehicles like trucks and vans make up the majority, 65%, of freight’s emissions. Most ships burn fossil fuels and emit carbon, but they carry large amounts of freight at the same time, making them the most efficient way to move cargo. Road freight, however, can emit more than 100 times as much CO2 as ships to carry the same amount of freight the same distance. Road transport is also a fast-growing sector—80% of the global increase in diesel consumption can be attributed to trucks. E-commerce and home delivery are two reasons for this growth.
The distance from Shenzhen to Long Beach is some 300 times the distance from Long Beach to Pasadena, depending on where exactly in Pasadena and which route you take. The CO2 emissions factor for a truck is some 10-100x that of a container ship. The exact ratio depends on what kind of truck, and what scope of emissions are being included. The more one accounts for, the more it will favor the boat. But overall, the emissions from the oceanic leg of the trip are probably anywhere from 1-3x those of the truck.
From the data at the end of https://climate.mit.edu/explainers/freight-transportation
You have to normalize for package volume. There’s one ship involved, how many delivery vehicles and other auto related logistics until that whole shipload has reached its final destination?
The distance the boat has to cover is 11800 kilometers, and the truck covers only 54 kilometers. Taking that average of 12 times more usage from the table of sibling comment means the ship is still 20x worse.
But what if you apportion the fuel usage over the items transported? Presumably the ship carries far more items than the truck.
This is already taken into account: Shagie's table is based on [1], which is per kilogram-kilometer
[1] https://climate.mit.edu/explainers/freight-transportation
I did some napkin math on this as I recently picked up a 3D Printer and wondered the environmental comparison to print-at-home vs pick something up at the store and I was surprised. Had some help from Claude but "last mile delivery" is absolutely where the majority of the kWh is burned in the supply chain.
Container ships use ~0.015 kWh per ton-km[1] and a car is ~1.35 kWh/km.
If you go to the store and end up getting >10 things it becomes "worth it" from an energy standpoint. Anything less printing at home seemed to be more economical... Not an expert though just saying it opened my eyes to how inefficient "last mile delivery" energy consumption is.
[1] https://www.withouthotair.com/c15/page_95.shtml (old reference)
> Not an expert though just saying it opened my eyes to how inefficient "last mile delivery" energy consumption is.
One of the oddities of home shopping and delivery is that it can be more efficient.
https://www.npr.org/2024/09/10/nx-s1-5020321/food-delivery-m...
> In 2022, researchers from the University of Michigan and Ford Motor Co. modeled a single 36-item grocery cart to compare greenhouse emissions from an e-commerce grocery delivery and a traditional trip to the store to get the same items. Gregory Keoleian and colleagues at the university's Center for Sustainable Systems found that using an electric vehicle to pick up groceries could cut emissions by as much as half, compared to a gas-powered vehicle.
> They also found that home delivery could be an even better option. That's because with a delivery vehicle, orders are often clustered, with a driver dropping off not just your groceries, but also hitting neighbors during the same run. "Delivery is actually going to be more efficient in general than driving yourself in a gasoline SUV to the store to pick up your groceries," Keoleian says.
The mentioned paper is https://css.umich.edu/publications/research-publications/car...
---
https://www.epa.gov/greenvehicles/what-if-more-people-bought...
> A recent USDA survey found that in 88% of U.S households, people hop in their car to buy groceries, driving an average of 4 miles to their preferred store. ... All these car trips result in carbon pollution: over 17 million metric tons of CO2 come from car tailpipes just from driving back and forth to the grocery store.
---
https://csanr.wsu.edu/how-do-grocery-and-meal-kit-deliveries...
> While it is common for the consumer to associate convenience in the food industry with increased greenhouse gas emissions, this is not always the case. Results from a 2013 University of Washington study indicate that grocery delivery has the potential to reduce carbon emissions anywhere from 20 to 75 percent (Ma 2013), while another study out of Finland found the potential for grocery delivery to reduce emissions by up to 87 percent (Siikavirta et al. 2002).
---
https://www.nytimes.com/wirecutter/blog/shop-online-sustaina...
> Buying goods online can be better for the environment than in-store shopping for one fundamental reason: With online shopping, a single truck or van can replace multiple car trips, by multiple households, to stores. It helps to think of it this way: In most of the United States, almost every purchase means putting a vehicle on the road—either your own or a delivery company’s.
---
Some others:
https://blog.sevensenders.com/en/ecommerce-carbon-footprint-...
https://web.archive.org/web/20250302115526/https://sustainab... (this one is quite comprehensive also including the difference in packaging)
And those articles come with their own citations to other articles.
I'd send a free text message to a family member, offering them money in exchange for them not sending me trash from Amazon.
I’m in the same corner of the parties with you.
Also I’m passionately opposed to feathering billionaires’ nests, even with fractions of pennies of profit.
This story is funny, but also so so sad.
I call, and raise you my own sardonic answer (not this one, the top-level one). :-\
Last time I checked (a few years ago), it was cheaper to send letters and small packages from South Korea to Germany than from Germany to Germany. The delay was also not that big (maybe 1-2 weeks instead of 3-5 days). I already envisioned an arbitrage business for this: a simple page where people upload their non-urgent letters as PDFs, and I just print and mail them from Korea.
This is already a thing; political parties sending out their mass mailings from Poland to Norway.
In Poland, OLX (basically equivalent eBay) commonly has promotional campaigns, where you can buy something from a select category with 1 PLN shipping to box machine (around $0.30).
So people figured out, that you can abuse it to send anything to anyone in the country. Just create a fake listing for 1 PLN, let the receiver "buy" it (there is some extra service fee, but like $1) and there you go - probably the cheapest shipping possible, much cheaper than regular ~$5-7 box machine package.
Same thing in France with Vinted
Somewhat off-topic, but when I click on "Case-Mate - Case for 2009 LG Xenon - Marsala"[1], the "About this item" section simply states:
About this item
- Do
- Not
- Buy
- This
- Product
What on earth is going on here?
[1]: https://www.amazon.com/dp/B09D51KNQM
You can pre-order it...
I actually used to have(maybe still have?) a LG Xenon
Jeff Bezos has more money than the Federal Trade Commission. That's how we pick the winner in any conflict.
Don't give money to amazon that is better spent on an amazingly efficient postal service. Amazon is subsidized by imaginary money until they put all their competition out of business(including USPS).
My honest question is: If you pull shenanigans like this, isn't it actually making Amazon burn through said imaginary money, thus hastening its demise? The cost of delivering a potato has to be on the order of at least a couple dollars.
I don't think Amazon is losing money. It's really just that efficient.
E.g. an Amazon van rolls through my street multiple times a day. What is the marginal cost of them stopping at my house and dropping off a potato?
At your house it might be fractions of a cent.
At my house, it's a 140 mile round trip between the fulfillment center ("are you feeling fulfilled yet?") and the drop off location.
OTOH, there's likely more of "you" than there are of "me" ...
Assuming it's the US we're talking about, the federal minimum wage is $7.25, which means that if every worker involved is paid at the minimum wage, you incur a cent of labour costs every 4.97 person-seconds. AFAICT, most Amazon workers are paid substantially higher than the federal minimum wage. And that's just labour costs.
While Amazon is efficient, "fractions of a cent" is probably the wrong order of magnitude for even the most efficient order.
Amazon will close your account before you can impact their bottom line.
I think they let you (not YOU necessarily, but the proverbial you.) get away with stuff because they know your habits and you probably make more money for them than you realize.
I can almost guarantee that everyone mentioned in that blog post is a habitual Amazon user. They're all renewing Prime each year at full price and making a ton of regular purchases. The family has even turned on the FOMO by making Prime a family social network with social pressure to stay. I see it as a self-own, personally.
Edit: I'm taking part of this to the root of the thread
Can you explain? Amazon is wildly profitable, and while AWS is far higher margin than their retail businesses, everything I can find suggests their retail segment also has a healthy operating margin.
I hate USPS, and will not be doing anything to benefit them until they offer a way to limit my deliveries to once a month, and opt out of anything that has "or current resident"
At the very least they should charge more for bulk mail, not give out discounts.
In Canada, you can place a red dot (or write no unsolicited mail) on your mailbox and they will withhold delivering anything not directly addressed to you.
I was shocked when I moved to SF and found out there was no way to opt out of unaddressed mail (or "current resident").
Unfortunately bulk mail is the only thing paying the bills. That and being a last mile delivery service for Amazon.
Which is a totally valid reason to hate USPS.
The USPS is a government-run spam delivery service that there is no way to opt out of. Those of us who do banking and other administrative tasks online would be better off if the government shut it down completely, or better yet subsidized it slightly so it doesn't have to deliver spam to survive.
But as it is, I don't see any good reason to have any more respect for USPS than I do for any other spammer.
Yes, exactly. I wish the post office were subsidized and acted in the interests of the public. But it is not, and does not.
Funny seeing this. I've been working on a site to allow people to send a letter as cheaply and conveniently as possible. I actually think letters (physical) are a great way to make an impression, often times much more so than an email. Had never considered sending an actual object lol.
At current scale (which is very small), the cheapest I can get it down to without losing money is $1.55 per letter (postage, paper, print, envelope, stripe fees, misc. hosting fees, etc.). Sadly, I have no way to compete with a $0.25 lime!
If you're curious, https://mappymail.com
What if you also start providing the 0.25$ lime feature as well (by making use of the amazon prime itself as well?) xD?
I've used something like this list to get "over the hump" for $35 to reach free shipping without prime.
It's horribly annoying to have a product that is $34.99 and you want it, but it'll cost shipping unless you get the damn Volkswagen screw; and then Amazon ships them individually anyway.
Just play their stupid game. My wife does this all the time, buys random items just to go past the free shipping range, then the item goes into trash (or is returned, if possible).
Even sellers started doing this, but instead of selling random items, they sell "extra hardened packaging material" conveniently at $1, $2, $3... prices. Of course when item arrives, no extra material to be seen. When questioned, one of them said "well, the package had cardboard box - that's it, wink wink, please do not report us".
The DoorDash pizza arbitrage comparison is apt. Both cases expose the same fundamental thing: venture-subsidised pricing creates artificial market conditions that clever people will exploit.
What I find interesting is how long these windows stay open. You'd think someone at Stamps.com or UPS would notice the pricing anomaly, but large organisations are often too siloed. The team setting international rates probably doesn't talk to whoever monitors small parcel economics.
The author mentions making a few hundred dollars - but the real question is scalability. At what volume does this become attractive enough for the postal services to close the loophole? There's probably a sweet spot between "not worth their attention" and "actually profitable."
The USPS have been on the receiving end of it themselves back in 1916 when someone mailed a building:
https://postalmuseum.si.edu/object/npm_2022.2007.1
https://about.usps.com/who-we-are/postal-history/bank-of-ver...
The lowest I found is two clip-on CAT5e cable termination jacks for $0.80 + 0.08 tax. Available in a rainbow of colors and shipped free to Seattle by Sunday if you order in the next 10 hours. https://www.amazon.com/dp/B08T63ST97
Or 3.5oz filet mignon flavor dog food for $0.84+tax with FREE two day delivery. https://www.amazon.com//dp/B07VBFLCKT
Beat that!
There are also things on eBay with a starting price of less than a dollar with free shipping that never get bids. I "won" two auctions like this the other week for brand new USB-C cables, each of them costing me 13 cents shipped.
I have no idea why sellers would do this with eBay fees and USPS small package shipping costing well over 13 cents.
Turns out, at least in my area, for the grocery items you need to buy at least $25 worth to qualify for the free shipping.
Yeah, this is misleading. You can't send a lime for $0.25. It's $3.24 minimum.
I canceled prime ~8 years ago because where I am, half the stuff I wanted was considered an “add on item” that could only be shipped free if you had > $35 of other stuff, which is a complete scam because you get that without prime.
Maybe that was just for me (in a large Canadian city at the time) or maybe they don’t do that anymore?
I haven’t considered getting prime since, it would be a lot more interesting if it actually provided the shipping terms they advertise.
I checked the first five items while logged in with Amazon Prime. They all required a minimum order of either $25 or $100 to get free shipping.
I checked the lime listed and it seems to be a regular amazon prime item for me (norcal) and not the grocery you described, which we also have.
Did you press the buy button? The shipping fee is $2.99
Ah, you're right. Sneaky.
To the author, would you consider changing the “key photo”? I sent the weblink to a friend, and the key photo in iMessage is the pregnancy test and they got the wrong impression about the site/prank. Pick the lemon or can of beans perhaps?
I would delight to receive birthday cards in Maruchan Ramen form.
As is tradition.
All of these items appear to have received the HN hug of death. They're all showing as unavailable for me, who just wanted to drop a friendly lime hello to a friend across town.
Riley Walz is easily one of the most creative people in tech today.
Yes, Jmail.world and the entire Jmail suite is mind-blowingly impressive, apparently Walz and @lukeigel co-created it.
I'm super surprised there is still free shipping for small things. In (some) other parts of the world, they will charge significant delivery fürs for anything below $50 or so. It basically changed during Covid, and since every shop is now doing it, there's no competition on that.
But the cost of Amazon Prime have to be factored in as well
Only if you weren't already paying for Prime. If you were, then it's irrelevant as this usage adds no marginal cost.
"If you already pay for shipping then shipping adds no marginal cost."
well, yeah. That's what the phrase "marginal cost" means: if it costs $x to do something N times, and $x + $y to do something N+1 times, $y is the marginal cost.
No, for anyone considering doing this it does not have to be factored in as it’s a sunk cost.
Has this person tried it?
Doesn't Amazon shipping have to go to the billing address on the credit card?
Being able to purchase on a credit card and have it sent anywhere makes it that much easier to use stolen credit cards.
> Doesn't Amazon shipping have to go to the billing address on the credit card?
No, I've had stuff shipped to plenty of addresses.
It looks like the billing address restriction was a "thing" years ago, but is simply too impractical for modern day e-commerce. People want to do gifting, or get things delivered to temporary accomodations like vacation spots. They are relying on approaches like heuristics (sudden purchase for something expensive going to an unusual address), plus CVV verification to help ensure that the purchaser physically has the card (still allows theft, but adds a layer).
You have to provide the billing address for the card. But you don't have to ship there.
Plenty of people ship to the office. I buy stuff for my parents from time to time. When I'm on vacation, I might ship to the hotel or a friend I'm visiting or ...
Pretty sure if you buy something as a "gift" (which is what allows the inclusion of a message) then you can send it to a different address. I rarely use Amazon and never have used it to send a gift so could be wrong.
You can send things to other addresses regardless of whether it's a gift or not.
> Doesn't Amazon shipping have to go to the billing address on the credit card?
No and that would be crazy. I'm not aware of any e-commerce site that has a restriction like that.
> Being able to purchase on a credit card and have it sent anywhere makes it that much easier to use stolen credit cards.
Well, it's probably one fraud signal among many, but it's absolutely not generally prohibited. I've sent things from Amazon to other people (or to myself while staying in a hotel), and other people have sent things to me, many times.
> You're not only saving money.
That's right, you're also cementing Amazon's control of the US economy. Both by doing more business there, and by spending time on that site which will lead to you doing even more of your business there. Not to mention having to be an "Amazon Prime" person to begin with.
This may sound weird to some, but - you should really avoid using Amazon where possible.
Why stick to strictly under $78? Something that costs $2 with free shipping has a built in $0.78 discount if you consider its free postcard function.
A cheaper option (if we’re going to do away with the restriction that the post card should be sent by the sender) would be for the recipient to hook their printer up to the network, and just send bits.
It is better, actually, you can even scan a real hand written post card.
We could even make a standardised protocol, where anyone could send messages to any connected printer: like letters, except a facsimile of the original document is produced. I'm struggling to think of a catchy name for this, though.
It’s not a fax unless it’s from the facsimile region of france. What you’re describing is just sparkling email.
You can even still do fax machines if you really wanted to.
owning a printer is never the cheaper option.
I'm sorry the ink cartel hurt you. May I introduce you to the world of laser printers?
My color laser printer has definitely been cheaper than me driving to the store hundreds of times to print thousands of color prints.
I think it depends. I bought a Dell 1700 laser printer for the low price of $0 at a second hand store about 19 years ago. They said it was failing to pull paper from the tray, and I could have it if I wanted. I fixed the rollers responsible for feeding (turned the rubber wheels inside out), and used it for another 10 years without issue. Sure, toner costs some money, but an off-brand toner cartridge is $25, rated for 3000 pages. I have also needed to replace the drum, and at one point picked up a second 1700 into which I had to put the old drum and toner after some failure or another.
I'd estimate I've put in $200 at most, and probably put 15-20k pages through it. Still prints just fine. It doesn't have color, or networking features, but I can share it on the network from the connected computer. I'm not sure they make anything this reliable these days, but I bet there's quite a few old laser printers floating around still.
Is there a simple way to search for everything and order by price descending? I'm in Australia so those items aren't much use.
I can almost guarantee that everyone mentioned in that blog post is a habitual Amazon user. They're all renewing Prime each year at full price and making a ton of regular purchases. The family has even turned on the FOMO by making Prime a family social network with social pressure to stay. I see it as a self-own, personally.
Debunked in the first click:
$0.25 - Lime - Amazon Fresh -FREE 2-hour delivery on orders over *$100*
Other products have similar shipping restrictions, or the prices are higher than claimed.
Also, most of the cheapest products (at least before tariff effects kicked in) don't allow customized messages that postcards allow, for obvious reasons.
Just sent my friend a bag of gravy mix, thank you!
A more recent question I have is how Amazon is skipping DeMinimis fees which are now massive on 50 cent or $1 items from their "Amazon Haul" which come from overseas
It arrives in a few weeks by Amazon's own carriers, not USPS/UPS/FedEx
Who is paying the $80 DeMinimis fee on the $1 cable I got last week from China?
Is it always $75 minimum, or is it alternatively 90% ad valorem?
This is just being rude to delivery drivers.
I think they would prefer to deliver small items than large, heavy items.
Isn't postal arbitrage how the original Ponzi scheme started?
Indeed. Ponzi attempted to buy International Reply Coupons in countries where they were cheap, then exchange them for stamps in the US and sell the stamps for much more than the purchase price of the IRC.
Of course, it didn't work. There wasn't anything fundamentally wrong with the arbitrage scheme, but the profit per coupon was way too low to make it feasible as a business. Ponzi pivoted to paying off older investments with new investments, and the rest is history.
Here in Ireland, a stamp is 1.85eur.
So. Many. Possibilities.
Wow didn't realize its much more expensive in some places outside the US. I'd think the smaller land area would make it cheaper.
lol everyone in the comments is taking this way too seriously