Amazon Prime has become increasingly popular thanks to free 2-day shipping as well as a full video streaming library and Kindle eBook borrowing program. A one year subscription to the service is priced at $79/year or $39/year for a discounted Student membership. Many current Prime subscribers are even using the 2-day shipping to purchase household items that you would usually buy locally such as toiletries, snacks, or pet food as they arrive in 2-days and are typically cheaper less than brick-and-mortar retailers.
Unfortunately, this pricing structure could be subject to change in the near future. During a recent quarterly earnings conference call, the retail giant mentioned they may raise the Prime subscription price by up to 50%. This could potentially be a large blow to Amazon's bottom line as a $40 yearly increase would likely keep many consumers such as myself from renewing their subscription or deciding to sign up in the first place.
What is the reasoning behind the price increase? The executives noted the price of shipping goods is rising and the retailer is unsure if they could continue to offer Prime benefits at their current price-point. Amazon's holiday season performance may also be to blame as their sales numbers were fell under projection resulting in their stock dropping significantly.
We will continue to cover this story as any further news develops so stay tuned and feel free to voice your opinion about the prospective changes in the poll below.
As a graduate of the University of Massachusetts and our Managing Editor, Colt loves testing out the newest tech products/services. His goal is to help better educate other consumers to ensure the most satisfying purchases decisions on consumer electronics and services. When he is not working on creating new content, Colt enjoys spending time with his two Australian Shepherds, Mia and Zoey.