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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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This article is over a month old, voting and posting comments is disabled

What has changed?
By mike8675309 on 1/31/2014 10:40:26 AM , Rating: 2
I think it is telling that the price has stayed the same for so long. For the price to remain that means either costs have gone up, or new customers growth has allowed better scaling of the service to keep operating costs flat.

So if they raise the cost will prime users be gaining something, i.e. the value of the program will increase with the cost? Or is the cost increase simply to protect current margins?




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