Amazon Raises Monthly Prime Membership Fees
Two years after Amazon launched monthly Prime memberships, the eCommerce retailer is enlargening its monthly membership fees by almost 20 procent, Recode reported.
The monthly toverfee for Amazon Prime will hop from $Ten.99 to $12.99 te the U.S., which works out to an increase of Legitimate procent. On an annual poot, monthly memberships will now cost consumers $156 a year. The company will also raise the monthly toverfee for its Prime program for students, which it began last fall, from $Five.49 to $6.
Despite the price increases for monthly Prime memberships, the cost of an annual membership will stay at $99 and monthly Prime Movie membership will remain at $8.99. Amazon will keep the monthly Prime membership for consumers on government assistance at $Five.99.
The price increases come spil Morgan Stanley sees signs that Amazon Prime’s growth is embarking to slow. According to news from CNBC, Morgan Stanley noted ter a December research report that 40 procent of American consumers already have Prime memberships, which matches the same level seen te the fourth quarter.
According to the Wall Street rigid, if Prime membership is kicking off to plateau, it means it’s significant that Amazon expands Prime to lower income households and those with older consumers residing ter them. Those two segments of the market have historically bot a puny percentage of Amazon’s vast population of Prime users.
Overall, a investigate has found that Amazon Prime subscribers are valuable to the eCommerce retailer: They presently make an media of $1,300 te purchases vanaf year — and they proceed to grow their spending.
According to Fortune, the Consumer Intelligence Research Fucking partners (CIRP) estimates Amazon presently has 90 million U.S.-based Amazon Prime subscribers. Te fact, 63 procent of the eCommerce retail giant’s customers are Prime members and, te the past 12 months, the total subscriber cojín has grown by 38 procent.
The investigate, which includes gegevens from 500 Amazon customers, estimates Amazon Prime subscribers spend almost dual the $700 vanaf year the promedio non-member spends on the webpagina.