Seattle-based American electronic commerce and cloud computing company, Amazon has shaken everyone by increasing the annual price of Prime membership. The e-commerce giant stated that Amazon Prime will cost $119 per annum for new users from May 11, 2018, and existing will see annual price renewals from June 16, 2018.
Experts stated that existing members will pony up additional $20 per year. Further, they added that Amazon’s new price tag won’t be deal-breaker for its users.
Art Markman, a professor of marketing and psychology at the University of Texas at Austin, said in an email, “Many customers will be willing to pay a higher price, recognizing the additional benefits they are getting from Prime.” Further, he added, “However, those customers who were only using Prime for the shipping may balk at the price increase.”
Amazon Prime members will get fast shipping, music and movie streaming, photo storage and many more. Besides, the service offers hallmark free shipping, these benefits will be the reason for many members to stay connected with Amazon.
Art Markman expressed that Amazon is most in danger of losing clients who aren’t probably going to begin utilizing the organization’s gushing administrations which Prime individuals can use to play Prime Music, among different highlights.
Rina Plapler, managing partner at MBLM said, “Because the Prime increases haven’t been all that regular, this may be palatable for the majority of Prime users.” Plapler added, “Should Amazon start to do this more regularly, then maybe it will start to create more friction.” MBLM is a marketing firm that has studied the relationship people have with Amazon.