Amazon (NASDAQ:AMZN) has struck a deal with three universities to operate co-branded websites. Now students can order text books, fan shirts, snacks and most other bookstore items on Amazon.com and have them delivered the next day on campus.
The partnerships are with Purdue University, the University of Massachusetts Amherst and the University of California Davis and will give Amazon a piece of the $10.3 billion spent annually in college bookstores, reported MSN Money.
As part of the deal, Amazon is offering unlimited next-day delivery to the campuses for any student that is a Prime member—one day faster than the normal Prime delivery guarantee. And the price of membership is half of a regular Prime price, at $49 a student.
This has been a big year for Prime, as CEO Jeff Bezos revealed during Amazon's fourth quarter earnings that Prime membership grew last year by 53 percent worldwide, and 50 percent in the United States. The large spike indicates that shoppers were not much affected by the 25 percent hike in the price of membership. Over the holidays alone, Amazon added 10 million new members.
Amazon also plans to have distribution centers on each campus where students can pick up packages from code-activated lockers or employees.
All course materials will be available for one-day shipping, regardless of whether the student has a Prime membership.
"Many of our students, we found, were Amazon customers anyway, so it made sense for us to do a deal with them," Mitch Daniels, president of Purdue, told MSN Money. He also said that Amazon was a great way for students to save money.
And the schools will get money in return. Amazon will pay the universities between 0.5 percent and 2.5 percent for every purchase made through its college website.
-See this MSN Money article
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