Online shopping most popular platform, Amazon.com
The company hinted a Amazon Prime Membership cost increase in late January, but now it is confirmed. Amazon informed subscribers in advance to expect a hike in the price, worth of $20 a year when their membership is set to renew. Prime, the premium service of Amazon was introduced nine years ago and has become one of the most profitable and stable sources of revenue. Basically, it offers customers free two-day shipping on more than 20 million items, free access to thousands of online streamed movies, TV shows and videos, as well as free access to over 500,000 books from the Kindle Owners’ Lending Library. Since its launch, the service has improved considerably. Yet, Amazon reminds that this is the first increase in its price since 2005.
The price hike comes as a result from recent losses, according to experts. Although the website celebrated a record holiday season for Prime and more precisely, in the number of new subscriptions in late December, it continues to report losses. It posted disappointing earnings for the previous holiday quarter and now it is expected to post revenue of $26.06 billion, earning $0.66 per share.
However, there is still time to benefit from the lower $79 Prime Membership fee, but only if you are new to the service. The annual membership will cost you less, if you subscribe until March 20. Existing members will have to pay $99 for the service when they re-subscribe. Students will pay $10 more, or $49 a year, while Prime Fresh Membership remains unchanged at $299.
