Neon Tommy - Annenberg digital news

Amazon Increasing Prime Program Prices

Kristy Plaza |
January 31, 2014 | 5:14 p.m. PST

Executive Producer


Amazon Prime Suscribers (Facebook/Amazon)
Amazon Prime Suscribers (Facebook/Amazon)
Amazon is trying to make a profit (for once) by raising Prime membership prices. Prime membership was $79; now it might be raised 50 percent, according to The Daily Beast

 The shipping fee is being raised after a bad fourth quarter earnings. So in order to see some profit and appease investors, Amazon is talking about raising its shipping fees. If they do this, it would add $500 million to their bottom line, according to The New York Times

Despite the 25 million Prime suscribers, Amazon runs a huge risk by doing this. According to Sucharita Mulpuru, an analyst with Forrester Research, Amazon might lose $1 to $2 billion a year.

"The more expensive Prime is, the more they are going to have to live up to their promises." 

To make sure they don't lose Prime customers, Amazon is looking for more benefits to give their customers, like more video options and more retailers to choose from, according to the NY TimesDespite the popularity and stock increase Amazon has, Wall Street expects more. Amazon is trying to keep up with the demands. 

There is no word yet if Amazon will also increase Student Prime membership prices. 


Reach Executive Producer Kristy Plaza here. Follow her on Twitter here. 



 

Live On Twitter

Buzz

Beyonce and Jay-Z delivered a stellar performance in Paris.

All ‘yes means yes’ does is clearly remove the excuses to commit assault.

 


Comments

Anonymous (not verified) on January 31, 2014 6:15 PM

Didn't netflix try something like this and wasn't it massively punished in the stock market?

Your rating: None Average: 5 (1 vote)

Leave a comment

Name
E-mail*
URL
Comments*
ntrandomness