Amazon Prime is one of the most popular services out there, and it has been providing some really substantial benefits to its users. There is an estimate that over 100 million users have been using it so far worldwide. Majority of those comes from the US, since Amazon holds a significant portion of market there.
The benefits of Amazon Prime are significant enough to make regular users inclined to using it as much as possible. Some really convenient shipping options are included, as well as the customer experience that can’t really be found in any of the competitors.
This was a signal for Amazon to react and try to get as much as possible from the current situation. Although unpopular, the move to increase the costs of annual Amazon Prime subscriptions was a sound decision businesswise.
Given the number of subscribers in the US, even the smallest change in pricing will generate serious revenue which will be then used to improve the overall experience. By raising the annual subscription by $20, the company will generate enough funds to bring the entire Amazon Prime experience to an entirely different level.
In perspective, this change will make the real breakthrough possible, as it will allow Amazon Prime to become the leader in its niche.
These changes in pricing policies are limited to the US at the moment, but it is possible that the rest of the world will have to follow in the same direction. For now, all the UK users of Amazon Prime will not be affected.
The change was also motivated by the assessment that the US customers have more benefits than the users from other parts of the world at their disposal. Namely, they have not only hundreds of millions of products available with a free shipping option, but they also have the access to films and music through this option.
All in all, this change in pricing is not expected to bring any negative side effects, and with the increase of quality, the Amazon Prime users in the US should remain more than content about what they get for their money.
Submitted by Studioworx Marketing Team on 19/06/2018