Will Amazon’s increase of Amazon Prime from $79 to $99 per year cost them customers?

dvarian

I just got an email from Amazon telling me that Prime Membership would be increasing from $79 to $99 per year when my membership renews. That’s a pretty significant increase, as a percentage of the price, but on the other hand, it is only $20. Will this end up costing Amazon in the end, or was this a reasonable move on their part?

Topic: Business
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jimlynch
Vote Up (4)

It's probably reasonable, but I still cancelled my membership renewal. The shipping is nice, but the video interface on the web is terrible. I went back to Netflix. And I can't read the monthly free Kindle ebook on the Kindle app on my iPhone, it's for Kindles only.

dthomas
Vote Up (2)

Judging from what I’ve read on various forums and comments on articles related to the increase, I don’t think it will have much of an impact. Sure, as a percentage of the membership cost, it is significant, but it is still only $20 extra per year. Heck, I just bought a six-pack of craft beer that cost nearly $20. One six pack. If I was only using Amazon Prime to stream video, it might make a difference, but I, like most Prime members, use it regularly for 2 day shipping. Since sales tax has been imposed on Amazon purchases in my state, I’m not using it as much, but still enough to make it worthwhile. To be honest, I’m amazed that Amazon has been able to offer free two day shipping for $79 a year. I bought a new 40’ flat screen from them and had it delivered free. Shipping for that alone would have probably been at least 30% or more of the annual fee.

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