Amazon Considers Increasing Prime Membership Fee To Offset Losses
If you are one of the many who make purchases on Amazon, you may be in for a bit of sticker shock. Amazon shares fell more than 9 percent in early trading on today, after the online retailer warned of a possible loss in the current quarter and its quarterly results missed expectations in the holiday shopping season, according to an article in Reuters.
In order to cut costs, Amazon is said to be considering increasing the cost of it's Prime Membership according to an article in the Huffington Post. Amazon charges users an annual fee of $79 for its "Prime" two-day shipping and online media service, considered instrumental in driving online purchases of both goods and digital media.
The company said it was considering raising prices for Amazon Prime by $20-$40 in the United States due to higher fuel and transportation costs and increasing usage. Analysts said the price increase would add about $600 million to Amazon's annual revenue while still representing compelling value to customers.