A paid subscription service offered by an American e-commerce giant making it’s more harder to quit. Amazon Prime is like a crown jewel as the giant keeps adding more perks to its membership. Amazon prime has been an important part of the company’s growth strategy. Last week, the giant announced the substantial discount especially for prime members, however, the total value of Prime benefits has been pegged at $785 a year while considering this ratio raised price of $119 a year might seem a great deal.
An e-commerce giant taking great care of everything to stay competitive. Chief Executive Officer at Amazon, Jeff Bezos said that prime members are the most valuable as well as most frequent customers, while there are approximately 100 million people across the globe who are paying for Amazon service.
Before some days, Amazon raised annual price of Prime membership from $99 to $119 while Amazon doesn’t report revenue directly attributable to its Prime program. Amazon reported $9.7 billion in total subscription services revenue.
Analysts said, “Prime delivers such massive scale and features that we believe it would be very difficult for any company to replicate and compete against, and Amazon continues to expand and add more value to Prime by adding new benefits and growing existing offerings.”
There has been some speculation that the higher cost of Prime may make some rethink paying for one more year of enrollment, yet most specialists don’t figure drop-in memberships would really happen in view of what number of individuals have revealed having positive encounters with the administration.
The e-commerce wants to make sure that customers take a second look at whether they’re really getting value for their money after the price increase, they’re satisfied with their membership.