Amazon Prime: Loved at Almost Any Price

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An estimated 150 million Americans are members of Amazon Prime’s shopping club, making it one of the most popular paid technology services in the United States. Most Americans are members, and many can’t imagine giving up the ability to order content on the tune and get it delivered quickly without any additional cost.

Here’s a question for you: will you stick with Prime at any cost?

I am asking because some financial experts following Amazon are speculating that the company may soon increase the price of US Prime membership.

The most recent price increase for Prime in the US was almost four years ago, when the price rose from $ 99 to $ 119 for most people who pay annually. The previous prime price increase was four years ago, which means it’s probably the time of the second bump. (Amazon has not been told in one way or another, and its public relations department did not answer my questions on Tuesday.)

When prices go up people move away from certain products, but it seems like almost no one leaves Prime. According to Consumer Intelligence Research Partners, or CIRP, which surveys people for brands and investors, about 98 percent of Americans who have been a prime member for at least two years continue to renew.

Prime is one of America’s most resilient consumer products. It ignores our price-conscious tendencies. And Prime is another example of the power of Amazon and other tech giants in America to reconnect our brains.

Probably the most (or least?) Surprise behavior among Prime members: Michael R. Levine and Josh Lovitz, co-founders of CIRP, told me that they believed that when Prime prices went up, some people placed more orders from Amazon. This trend can be explained by the need to make more expensive members experience the value of money. (You may exercise more when the cost of your gym membership also increases.)

But even Prime is not entirely immune to the effects of high prices. Levine and Lovitz say that while Amazon will raise the price of Prime, some people will lash out at options like Walmart’s Shopping Club. They also said that Americans who have paid for a monthly prime membership tend to stop and restart more often than those who buy an annual prime membership.

Prime was a project that Jeff Bezos said was a controversial idea when it was first launched on Amazon in 2005. Amazon’s Money Nerds company initial prime members who bought relatively low-cost items and placed frequent orders were shocked by the shipping costs.

Over time, the service has proven its usefulness to Americans and Amazon. Probably more than any one of the company’s decisions, Prime has attracted Americans to Amazon.

Shipping still costs Amazon a fortune, but Prime members mostly only shop online on Amazon. An analysis by Morgan Stanley last year estimated that families that are prime members typically spend more than $ 3,000 a year with Amazon. Those who were not affiliated with Prime spend half as much on Amazon.

Prime is one of the ways in which Amazon has turned America around. Another example: When Amazon said in 2019 that it would begin shifting the standard delivery time for US Prime members from two days to one, Americans began ordering urgent needs, such as a phone charger, on Amazon instead of going to the store, company officials said. . This change in the behavior of millions of Americans was almost immediately noticeable in Amazon sales.

In this newsletter I talk a lot about the need to be more aware of the impact that the choices of tech companies have on us and our world. Because of Facebook’s tinkering with its software, political parties decided to make their campaign messages more negative and encouraged more Americans to sign up to vote. The way we make money from Apple’s apps is determined by the digital services available to us, and we don’t know if the alternative reality could be better.

Americans have shown that they are affiliated with Prime. We will see if the potential change in price affects it.

Tomorrow, I’ll explain my own shopping secret: I left Prime.

We want to hear from our readers about the use of Prime. Please let us know in the comments why you have a Prime subscription or not; If you have, let us know if you’re willing to pay more for it. We may publish a selection of responses in the next newsletter.


  • No-confidence motion against Facebook to proceed: The U.S. federal court judge said the government could continue with part of its lawsuit, which claims the company has a monopoly on social media and has abused its power by buying young competitors, including Instagram, my colleague Cecilia Kang writes. .

    Related: Tech writer Casey Newton says the lawsuit is about Facebook’s past. A government watchdog questioning Facebook’s acquisition of virtual reality companies could hurt the company’s future.

  • Here (and go) copycats: Many people created apps that were almost exact copies of the word world, which suddenly became a popular online puzzle game. Apple seems to have kicked these copycats out of its App Store, reports Verge.

  • How to be successful on TikTok by being curious: Writes about unhinged TikTok videos created by protocol language learning company Duolingo and why some businesses are embracing TikTok’s stupid vibe. (Please email me your favorite Odball brand accounts on TikTok!)

“Slitty pie.” “Frostbitten Mitten.” Ctrl Delete the salt. These are just a few of the many snowplows operated by the Michigan Department of Transportation. (Thanks to my colleague Erin McCain Tweeting This.)


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