Why the Amazon Prime Price Increase is Good for Retailers

Amazon has been willing to take a loss on Prime because it thought of logistics strategically as a sales and marketing investment. Contrast that with the approach of traditional retailers, who have always viewed logistics tactically, as an operating expense and "after the sale" activity. In order to minimize its costs, Amazon has quietly shifted much of its two- and next-day parcel shipments to the cost-effective local delivery (courier) industry.