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Amazon CEO Jeff Bezos  (Source: Salon)
More price hikes likely in store for Amazon customers

For those that frequently shop on Amazon.com year round (or even just during the holiday shopping season), Amazon Prime is like a gift from the gods. The service allows customers to get packages delivered to their home with two business days (sometimes even faster if you’re close to an Amazon distribution center), gives users access to a growing digital video library (movies, TV shows, original programming) and special Kindle “lending” perks.
 
However, it appears that the $79/year Prime membership may be getting a lot more expensive. Citing increased shipping costs; Amazon CFO Tom Szkutak made it clear that the online retail giant is “considering” a price hike for Prime membership.
 
According to Szkutak, that price increase could be anywhere from $20 to $40, which would put an Amazon Prime membership at $119/year if the bean counters get everything they want.
 
The writing has been on the wall as Prime has been around at the same $79/year price for nine years, and Amazon recently bumped the free shipping threshold for non-Prime members to $35 (from $25) on orders.
 
Amazon has also come further under assault from tax collectors in various states, with North Carolina residents becoming the latest to “face the music” when it comes to paying taxes on Amazon purchases.

Source: The Verge



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Not for me
By Jonwww on 1/30/2014 6:47:06 PM , Rating: 3
I appreciate that Prime has stayed the same price for the past 9 years but I won't be re-upping the service when/if they raise it. They are the number one shopping site but one of the main draws is/was the fact you didn't have to pay tax. As of now 19 out of the 50 states need to pay tax which has already caused me to shop other sites instead. Add on top of that needing to pay additional for shipping=unfortunately I'll be buying even less from there.

If more stores would actually partner with Shoprunner that would be a great alternative as I don't get charged tax by many of the stores on there. And their annual subscription price is the same but for dozens of stores.




RE: Not for me
By Solandri on 1/30/2014 11:51:05 PM , Rating: 2
quote:
They are the number one shopping site but one of the main draws is/was the fact you didn't have to pay tax.

Largest retailers in the US:

1. Wal-Mart - $329 billion
2. Kroger - $92 billion
3. Target - $72 billion
4. Costco - $71 billion
5. Home Depot - $66 billion
6. Waglreens - $66 billion
7. CVS - $64 billion
8. Lowe's - $49 billion
9. Safeway - $38 billion
10. McDonald's - $36 billion
11. Amazon - $34 billion
12-18 are $34-$25 billion

http://www.stores.org/2013/Top-100-Retailers

So while Amazon is the biggest exclusively online shopping site, it's actually pretty small compared to the really big retailers. I'd be curious how much those bigger companies do in online sales.


RE: Not for me
By Etsp on 1/31/2014 10:48:22 AM , Rating: 2
quote:
They are the number one shopping site but one of the main draws is/was the fact you didn't have to pay tax
This was never true.

Amazon did not CHARGE you for the state taxes on the purchase, but you ARE supposed to still pay those taxes.

That said, I doubt any state tax agency is going to go after individuals for this, since so many people didn't pay those taxes. That's why they are working to change the laws on this.


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