Amazon share price opens higher as Prime membership cost increases

Marcus Newton
January 20, 2018

Amazon shares are up 1% in Friday trading and up 60% for the past 12 months. These changes are going into effect today for new customers.

Meanwhile, the discounted Prime Student monthly plan is being raised form $5.49 to $6.49.

The annual upfront charge will remain unchanged.

Amazon Prime's standalone video membership will continue at its $8.99 monthly price. That plan also includes Amazon Prime free two-day shipping, video and music streaming services, Prime Reading and unlimited photo storage with Prime Photos.

The plan previously cost $10.99 a month, but it will now cost $12.99 a month. But is it worth a 20% price hike?

As indicated by Fortune, the Consumer Intelligence Research Partners (CIRP) gauges Amazon presently has 90 million USA - based Amazon Prime endorsers.

Amazon is raising the price of Prime monthly memberships by nearly 20 percent

Amazon Prime just got more expensive. Those two fragments of the market have generally been a little level of Amazon's enormous populace of Prime clients.

The increase comes less than two years after Amazon first introduced the monthly payment option as a way to attract new Prime members who either couldn't afford the annual membership of $99 (which is not increasing), or didn't want to commit to using the service continuously.

As indicated by the Wall Street firm, if Prime participation is beginning to level, it implies it's essential that Amazon grows Prime to bring down wage family units and those with more established customers living in them. In the US alone, more than 6,000 trucks and 32 Amazon Air planes traversed the roads and skies, packed with Amazon packages.

Getting people to sign up to Amazon Prime fares well to the company, the CIRP study found. To make chages to an existing Prime membership, visit your Manage Amazon Prime Membership page. In any event, the company appears a bit more eager to have those interested in Prime lay down $99 upfront.

Amazon has always been cagey about sharing exact Prime subscribers figures, but recent third-party estimates have pegged the service as having about 90 million members in the U.S. alone. That's nearly double the $700 non-members spend on Amazon each year.

More news: The Pentagon Has Plans for New Nuclear Weapons
More news: National Column: Trump gave his underlings a new Cold War doctrine
More news: Rajon Rondo Doesn't Think Celtics Should Honor Isaiah Thomas

Other reports by MaliBehiribAe

Discuss This Article

FOLLOW OUR NEWSPAPER