Amazon raised the price of Prime from $79/year up to $99/year. This is only half of the increase that Amazon mentioned they were considering about 1 month ago. The student prime also increase to $49/year.
Amazon Prime members get free two-day shipping, movie and TV streaming plus the ability to borrow kindles. For those that purchase online often or simply watch movies and TV shows, the $20 increase isn’t a big deal.
The reasoning behind this increase price is nothing more than expenses have risen. Prime started nearly 9 years ago and hasn’t change the pricing one time. Since then, fuel prices have risen tremendously from the low $2 up to nearly $4 now.
Amazon mentioned that Prime hit a record growth rate in December of 2013, with over 1 million sign ups in 1 week!
“The company also said that it has increased the benefits of the program, now offering free shipping on 19 million items, up from only 1 million nine years ago. It also introduced its video streaming service in 2011 and recently launched Amazon-produced shows.” – CNN Money
Amazon allowing shoppers to get free 2-day shipping is causing some problems for local brick and mortar retail stores. However, Amazon isn’t stopping with 2-day shipping. Many items are eligible for 1 day shipping and there are talks about using drones for same day delivery!
What are your thoughts on Amazon Prime? Have you used this service? Tell us your thoughts in the comments below.