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Amazon to Increase U.S. Prime Annual Fee to $119, Up from $99

Amazon will increase the annual cost of Prime for U.S. customers to $119 per year, up 20% from $99 currently — news coming after it blew the doors off revenue and profit expectations in the first quarter.

The price increase will take effect starting June 16 for existing Prime customers based on their renewal period

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UltimateOwnage50d ago (Edited 50d ago )

So they made more profit than expected but are still driving up the annual service fees by a notable margin... I’ve been a prime subscriber since the service began, but it’s starting to push the limit on what I’m willing to pay at this point, personally. I don’t use a lot of the services that justify the fee.

If they had a Prime Lite that provided only prime shipping services for $59 a year, and for $59 more ($120/yr) you get Prime Music / Video and other services added on, it would be a bit better at this point as the price continues to climb.

Cobra95148d ago

But they have you. Maybe not you specifically, but you know how it goes. Once people sign up for something that offers any value, they rarely back away, and a 20% increase is unlikely to make them jump through hoops to give it up. The genius of Prime is that it's money for nothing, like the Dire Straits song. You're paying $100 a year to get treated as any customer should. And because of the success of Prime, now Bezos can afford to alienate whoever won't pay for the privilege of giving him even more of their money. Now that privilege will cost you another $20.

Sgt_Slaughter50d ago

This is backwards thinking at best. They'll drive customers away at this point. Could be making much more money with a cheaper rate, all but guaranteed.