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Amazon looking at a possible Prime price hike of $20-$40 for US users

Amazon Prime memberships could end up costing $20-$40 more for US members (NASDAQ:AMZN)
| Internet & Websites News | Posted: Jan 31, 2014 10:24 pm

Everyone's favorite online shopping destination is considering a price hike for everybody's favorite two-day shipping club. That's right, Amazon is considering increasing the price of US Prime memberships by $20-$40. This piece of information was given out yesterday during Amazon's earnings call, during which it detailed its earnings.




It's not exactly clear why Amazon would want to increase the price for US Prime memberships, especially considering they reported record membership numbers. One reason provided was higher shipping costs, though I'm not completely convinced this is the real reason. Since its inception, Amazon Prime has expanded beyond two-day shipping by adding free Kindle rentals and instant streaming of over 40,000 videos. I would venture to guess that the cost of adding content to the streaming service is the real reason for the contemplated price hike.


It's possible that Prime memberships could end up having different tiers, though Amazon's CFO dodged a similar question during the earnings call yesterday. One thing is clear, don't be surprised if you start having to pay more for your Amazon Prime subscription.


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