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I've never had a package stolen off my front porch, but if I reported to Amazon that a package that their tracking system reported delivered was not actually delivered, what would they do? I'm guessing they'd just reship the items. If they didn't, my Amex would reimburse the charge under their theft protection. If I'm not out any money for stolen packages, their indoor delivery system is protecting their interests, not mine. So I'd want to know how much Amazon was offering to pay me to install and use this system.

(No, I probably wouldn't use their system regardless. I already have remote access cameras and door lock/unlock systems, and no one but me and my wife can use them, which is how I like it. But my point is that this is just another of many situations where I'm being asked to insure somebody else's interest. If someone wants me to insure their interests, they need to pay me to do so, not the other way around.)
They are selling lock-in as well as a way to sell services on top of the goods they already sell. The target market probably already pays for Prime, gets deliveries 4-6 days a week, and hasn’t made a monthly pilgrimage to a big box store to stock up on household supplies in a few years. It’s approaching having a virtual butler on staff for the price of the monthly shopping some households do anyway.
 

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They can probably afford to have an area built specifically for deliveries. Something like the small waiting area at entrances at some restaurants or even a small external storage closet separate from the main living area.
I forgot to mention that some newer apartment complexes have package rooms and text or email residents a single-use code when they have deliveries waiting.

Also...those I know that already have food and household supplies delivered regularly see a cost savings because the "reorder" button doesn't lend itself to impulse purchases the same way that going to a big box or a grocery store hungry (or with kids) does. Those folks are also fans of the 2-3 hours per week of time savings as well as reduced vehicle wear and tear. I get the appeal on all counts but they aren't as applicable to me.

Edit to add: One can't always add space if they're renting or own and can't expand (townhouse or condo) and even if they own and can add on, $200+/sq.ft. can make for an expensive closet.
 
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