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Thread: Amazon Prime going up 20%

  1. #1
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    Default Amazon Prime going up 20%

    The annual price of an Amazon Prime membership in the US is going up by 20 percent.

    Amazon finance chief Brian Olsavsky said during an earnings call with analysts Thursday night that his company will hike Prime's fee to $119 a year, from $99, on May 11. The new price will apply to existing Prime members' renewals starting June 16. If your regular renewal is after June 16, you won't be allowed to prepay for another year at the currently lower rate, an Amazon spokeswoman said.

    That increase is only the second time Amazon has increased the annual Prime membership since it was first introduced in 2005, with the company in 2014 raising the price to $99 from $79.

    Despite those few increases, the boost to Prime's fee -- particularly above the psychologically significant $100 level -- could threaten future renewals and new Prime customers. Prime is one of Amazon's most important businesses, helping build loyal, repeat customers who tend to spend about twice as much with Amazon than non-Prime shoppers.

    Prime's biggest customer base is in the US and most of those members sign up on an annual -- instead of monthly -- basis. That means tens of millions of US customers will be impacted by the change.

    Amazon CEO Jeff Bezos just last week revealed that Prime hit over 100 million members, owed in part to the company's continued push to add new benefits, including the Prime Video streaming service, more same-day shipping, the Prime Now rapid delivery program and the Prime Day annual sale.

    "We still feel this is the best deal in retail and we work to make it better and better every day," Olsavsky said on the call.

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    He added that the price hike was partly to reflect the higher costs of offering Prime, with its rising shipping fees and additional perks. The number of eligible items for two-day shipping at no additional cost increased in recent years from 20 million to more than 100 million items in the US, the company said.

    The cost of the new annual membership remains a better deal than the monthly fees, which amounts to $155.88 a year. Amazon raised the price of monthly US memberships in January by 18 percent to $12.99.

    One way Amazon has been able to boost membership fees without raising the annual price beyond $100 was by creating a bevy of add-on subscriptions, such as Prime Pantry, Amazon Music Unlimited and Audible Channels. That effort, perhaps, wasn't doing enough to help Amazon recoup its rising shipping costs for Prime members.

    Amazon's first-quarter earnings, which were also reported Thursday, were again strong, with the company posting its second consecutive quarter of over $1 billion in profit. Shipping costs in the quarter rose 38 percent from a year earlier to $6.1 billion. Subscription fees, which include Prime memberships, rose 56 percent to $3.1 billion from a year earlier.

    Michael R. Levin, co-founder and partner of Consumer Intelligence Research Partners, said Amazon will likely take a temporary hit from the price hike, seeing some Prime members opt not to renew and others avoiding signing up.

    But, with Prime experiencing strong renewal rates, at over 90 percent after the first year and even higher after the second year, he said most customers will accept the higher price.

    "After you sign up for that second year, they've got you for life, man," Levin said. "This is a pretty strong signal that they're pretty confident that they'll keep a lot of members."

    https://www.cnet.com/news/amazon-to-...o-119-from-99/

  2. #2
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    They could double it and I would still come out way ahead.

  3. #3
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    Most folks will probably absorb it, but damn that will make a dent in their bottom line. We use the shit out of amazon, but I'll have to think about it.

  4. #4
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    If $20 a year is going to break you then I hate to tell you but you're already broke and shouldn't have prime to begin with.

  5. #5
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    I think I read where Bezos made 37.5 billion dollars last year, guess he is shooting for 40+billion this year. But I will say that with the amount of crap that hits my front porch weekly from Amazon, the $119 is still a bargain.
    every expert was once a beginner

  6. #6
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    Quote Originally Posted by Glenn View Post
    If $20 a year is going to break you then I hate to tell you but you're already broke and shouldn't have prime to begin with.
    #preach
    The right to bear arms is the last form of defense against tyranny.

  7. #7
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    That's fine. I will still be burning their ass up on shit I can wait for, can get cheaper there, or refuse to deal with traffic to get.
    Last edited by fro; 04-26-2018 at 06:52 PM.
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    Quote Originally Posted by Rebel Yell View Post
    The older I get, the more anal retentive I get.

  8. #8
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    Is this racist?

  9. #9
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    Just another way to OWN YOU>Think about it.
    Gettin old is for pussies! AND MY NEW TRUE people say like Capt. Tom >>>>>>>>>/
    "Wow, often imitated but never duplicated. No one can do it like the master. My hat is off to you DRDUCK!"

  10. #10
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    They could charge $219 and I would still use it
    Member of the Tenth Legion Since 2004

  11. #11
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    Quote Originally Posted by Tater View Post
    They could double it and I would still come out way ahead.
    Fuggin A.

  12. #12
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    Quote Originally Posted by Glenn View Post
    If $20 a year is going to break you then I hate to tell you but you're already broke and shouldn't have prime to begin with.
    The good news is that if you are on food stamps...Bezos only charges you half price for amazon prime.

  13. #13
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    I'll save that much in not using gas to run to the store throughout the year.

  14. #14
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    Attention Prime Citizens, please return to your Prime Domicile and enjoy your Prime Dinner before reciting the Prime Directive in preparation for Prime Slumber.

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