Increase In the Cost of Amazon Prime Membership

Internet retail giant Amazon has managed to position itself as one of the world’s leading providers of goods. It has done this through a combination of a great reputation and quality products. The company itself produces few products on its own, but it has an incredibly large marketplace for others to vent their products. One of the most popular offers that have been given by Amazon is their Prime membership. Individuals with a Prime membership are entitled to free two-day shipping as well as a host of other services such as online video streaming and music. For many years the overall cost of prime has simply been $99 for 12 months. At less than $100 a year the free shipping, which only takes two days, pays for itself if you shop even semi-frequently on the marketplace. They have recently announced that they will increase the cost of membership by $20 up to $119 per year.
This announcement was made after the company’s quarterly reviews were it was able to announce that it greatly exceeded their expectations for revenue and profit during the quarter.
Whenever the company was questioned as to why they were raising costs they explained that it was due to a combination of both an increase in shipping expenses as well as spending on digital content. The company explained that it was a simple process of looking at the program itself and the benefits that it is delivering. Over the years numerous additional features have been added to the membership program.
Four years ago there were only 20 million products that were able to take advantage of the free two-day shipping offered by the membership. Today that number has grown to greater than 100 million products. In fact, some items are available for free same-day delivery.
Amazon has been able to exceed over 100 million members worldwide for Prime. The company has begun to expand its digital content suite, and this has caused significant sums of money. There is still, however, a discount on the membership for students who are able to purchase a yearly membership at only $59 a year.

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