According to a survey by Yahoo, 45% of Amazon Prime subscribers will ditch the service when the price goes up over the next few weeks in the USA.
Last week, we reported that Amazon will be raising the cost of Amazon Prime in the USA from $99 to $119: Amazon US to raise annual Prime subs by $20. The change will become effective on the 16th June, so if you are due to renew before then, you’ll enjoy the old $99 fee.
And that announcement came close on the tails of Amazon’s first quarter results and the company’s announcement that there are now 100 million prime subscribers around the world. There is no indication that a price rise will be coming any time soon to Amazon Prime users outside of the States.
According to the recent Yahoo Finance survey of almost 7000 existing Prime members, 45% said they will discontinue their membership once the price goes up to $119 a year. 20% said they were unsure. But for the remainder of those who are willing to pay more, the vast majority cite “fast and free delivery” as the top reason for staying.
Brian T. Olsavsky from Amazon.com said of the announcement last week that this was the first increase in fees for Amazon Prime since March 2014 and, in that time, the costs had risen and perks of Prime had dramatically increased. The Prime service is rather more generous in the USA with many more options and services available than in the UK and Europe.
And, with monthly options available, it is likely even if people do ditch Amazon Prime then they can also return at peak and interesting periods like Christmas and Black Friday should they wish.
As is well established, people will say one thing in a survey (often depending on how the questions are phrased) but then don’t follow through and actually do what they said they would. It seems unlikely to Tamebay that there will be a dramatic fall-off in numbers using it. Not least because it is annually renewed and $20 dollars isn’t likely to a big deal for the majority of subscribers who are more affluent than average americans.