Change : Amazon considers $40 Prime price hike

Amazon Prime customers may have spend even more to receive service.

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

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

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

Right now, the organization said hello could not elaborate further on this possibility. Mr. Szkutak said details about a potential price hike in Prime are still being deliberated. Quite a few 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 when it comes to possibly tiers around the service, he can’t actually speculate. But he did not rule out the possibility that it might be presented later on.
Amazon Prime continues to be among the most popular programs offered in the industry. Although members are inspired to shoulder annual membership fees, many of them realize that the service is

still very practical. The benefit of Prime is generally realized more during the holiday shopping season, when most costs of shopping usually rise. There isn’t any additional information available concerning the possibility of the service requiring additional or higher fees.