Change : Amazon considers $40 Prime price hike

Amazon Prime customers may have shell out even more to receive service.

According to USA Today, the online retailer is considering increasing the subscription price by $20 to $40. The possible price change came up during a conference call with analysts on Thursday, following a disappointing quarter.

Amazon Prime currently costs $79 a year and includes streaming video and free two-day shipping on most purchases.

Keeping price steady

According to Tom Szkutak, Amazon CFO, the price of Prime membership has remained at its current level since its launch about nine years ago. He added that this program now covers over 90 million items. This may mean that the service has really become popular among practical users.
Mr. Szkutak said more Prime members must have realized the practicality of the shipping benefit. Thus, demand for the service has risen ‘dramatically’ since the launch of the program. He revealed that most of the members are now ordering more items in more categories probably to take advantage of the free two-day shipping offer.

Other possibilities

Right now, the company said it could not elaborate further on this possibility. Mr. Szkutak said details about a possible price hike in Prime are still being deliberated. Some users are already calling for installment basis in annual fee payments. Others think that setting up tiers would make the service reasonable despite a possible price hike.

Mr. Szkutak clarified that in terms of possibly tiers on the service, he can’t actually speculate. But he did not rule out the possibility that it may be rolled out in the future.
Amazon Prime remains as among the most popular programs offered in its industry. Although members are asked to shoulder annual membership fees, many of them realize that the service is

still very practical. The benefit of Prime is usually realized more during the holiday shopping season, when most costs of shopping usually rise. There is no other information available about the possibility of the service requiring additional or higher fees.

Agencies/Canadajournal