[baldfat]

I think Prime has always been a money loser for them. There is no way that my shipping charges was less then $100 for the past 4 years.

[simias]

If it made you buy product you wouldn't normally have bought through amazon then they can still make a profit even if the prime membership does not finance the whole shipping charges.

[phantom784]

Plus, increased shipping costs are counterbalanced by the fact they don't need to run lots of brick-and-mortar locations.