It seems that the recent increase in the minimum shipping to qualify for free shipping with Amazon isn’t the only price hike, Prime members are also looking at a price increase.
According to a revelation during the Amazon quarterly earnings conference call it was revealed that Amazon is considering a price increase in their Prime membership fee. How much will this increase be? It could be as much as 50%!
The current price of Amazon Prime is $79 a year and provides free two day shipping on a majority of Amazon products. If the deal is so great though, why are Amazon having to charge more for the Prime service? The bottom line is that Amazon stock is dropping after they experienced a disappointing holiday season this year and missed both their top and bottom lines in terms of expectations. Additionally, it is important to remember that as the postal services keep increasing their prices, companies like Amazon have to keep increasing theirs in order to keep up.
According to rumors the price increase for Prime will run somewhere between $20 to $40 additional per year. Would this price hike really impact the number of people who rely on Prime service? It’s unlikely simply because of the convenience that free two day shipping and discounted one day shipping offer.