Amazon Simple Hack helped them to Boost revenue by 36%
It hurts more when you lose than when you gain the same amount
Amazon when launched in India, leveraged this simple psychological hack to dominate the Indian Market
In the US, Amazon usually adds shipping fees to the final price.
But in India, where shoppers are more price-sensitive, they were reluctant to pay extra for shipping.
Instead, they preferred to shop from the local market to save on shipping charges
So Amazon started offering free deliveries. Instead of pricing a product at (500 + 100 shipping), they listed it as (600 + free delivery)
Result,
Conversions skyrocketed and revenue per customer jumped by 34%.
Amazon then took this insight further by creating Amazon Prime, which offered free shipping on all orders.
Now, almost every Indian e-commerce and direct-to-consumer brand has adopted this strategy.
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