Amazon Set to Increase Prime Membership Fee By 17% for US Customers

[siddavis]

We're way off topic, but I would argue in each of those first 3 cases it was number of gov't regulations that enabled those to occur.

That's thing with regards to 4, companies use regulation to redefine how they compete in the workplace to their advantage. Bezos uses NASA safety regulations to ensure other competitors can't easily enter the market and would not doubt fight any effort to weaken them to make it easier for a competitor. Amazon benefits from government security regulations for cloud computing to limit a small company from easily entering and undercutting their price.

I'll sign off this chain of thought with a paraphrased quote (I do not remember it exactly) from one of my favorite economists:

We're free marketers, not anarchists. Regulation has its place - Merton Miller

I don't think we are that far apart. I definitely do not advocate unfettered capitalism, but today's concept of "democratic socialism" is a very far cry from minimal government intervention. We must fight this nonsense where possible, especially when the language is being redefined to put fluffy names on otherwise dangerous concepts. Kinda like Facebook with their commercials advocating for internet regulation... how noble of them.

Back to the point... the idea that more regulation or taxes or whatever government intervention is the answer to the giant that Amazon has become is foolish. It will only enable them to further dominate and push competitors out.

 

[siddavis]

We all live under capitalism and it has good and bad aspects but a lot of your assertions are free-market fairy tales or outright incorrect.

Ironically, your argument on government inefficiency w/r/t infrastructure could be better solved by bigger government rather than small. The private sector will not serve broad infrastructure needs of this country without more unneeded urban consolidation of the population. So wholly privatizing it is not tenable. Meanwhile, the public-to-private interface (i.e. government contracting) is the biggest source of fraud against the taxpayer. It would seem to me that the solution would be to eliminate the contracting element of infrastructure and use state departments of labor source unemployed workers and direct them towards roadwork/construction labor as a wholly state-ran project.

I'll let you drive on those roads and bridges first.

No other system in the history of mankind has lifted more out of poverty than capitalism. It aint perfect, but it's better than all others.

 

[ggibson913]

I literally only have Prime for fast and "free" delivery and I'm sure I'm not alone in that

You definitely are not alone for sure.

 

[rgwebb]

I'll let you drive on those roads and bridges first.

No other system in the history of mankind has lifted more out of poverty than capitalism. It aint perfect, but it's better than all others.

Seems like the contracted bridge work plenty good at collapsing too.

I’m not really arguing against the capitalism but simply keep the government big where needed and small where it is not. I do not think the markets are capable of maintaining a society without checks for public interest. Not everything has sufficient price signals to make the market react but they are needed. Like the example I made, there would not be a direct price signal for rural road maintenance so they’d likely go to ruin under a privatized system. Unfortunately, there are second, third, N-order problems that arise due to that market reaction that are deleterious for society as a whole.

 

[Thebrochure]

The additional revenues and profits don't just benefit the Bezoses and Cooks, all shareholders can benefit.

There's also the risk of things going the other way too. If Wall Street sees a drop in revenue and/or earnings for a company, it can negatively impact stock value and investment holdings of all shareholders big and small.

As far as the Prime membership price increase goes (keep in mind, this is the first increase in about four years), customers can express their dissatisfaction with their wallets. If they feel the price has become too high, they can cancel their membership or not sign up if they don't already have one. They can also go a step further and do their shopping elsewhere. Amazon isn't the only retailer out there.

Well, I am absolutely okay with capitalism. They can charge what they want. And you're right, people can not pay it. But I was just saying that these increases are growing more and more harder to justify. I understand the stock market issue, and it would cause some devaluation, but in the end, would it take them down? I don't think so. As a matter of fact, if Amazon had come out and made some BS PR statement about how they were going to temporarily lower the price of prime to $9.99 because of COVID and the hardships a lot of people are going through, I think you might have seen a bump in stock, as so many more people would have rallied around the company and joined up.

I don't know. It's a convoluted mess.

 

[deeddawg]

Let us know when it "actually arrives" (no matter what method you choose...)

Speaking just for myself, it’s rare stuff doesn’t arrive when expected.

While they miss occasionally, I find they’re on time or early far more often than not.

Of course that could be different in other places.

 

[Dark_Omen]

Well, I am absolutely okay with capitalism. They can charge what they want. And you're right, people can not pay it. But I was just saying that these increases are growing more and more harder to justify. I understand the stock market issue, and it would cause some devaluation, but in the end, would it take them down? I don't think so. As a matter of fact, if Amazon had come out and made some BS PR statement about how they were going to temporarily lower the price of prime to $9.99 because of COVID and the hardships a lot of people are going through, I think you might have seen a bump in stock, as so many more people would have rallied around the company and joined up.

I don't know. It's a convoluted mess.

I mean companies don't need to justify it. They can charge what they want. There's an equilibrium price, and also equilibrium demand that will eventually reverse into the negative territory once the price gets too high. Obviously, Amazon's analysts know this price hasn't been raised enough to justify the reversal of demand on their supply/demand graph, or else the price wouldn't be going up. The people who analyze this stuff for companies aren't stupid.

You are free to take your money somewhere else, and that is the beauty of capitalism and competition. Those who actually think government-providing services or regulation must think the ultimate monopoly (government) is the best economic solution. These people are highly misinformed on economics 101.

 

[whatgift]

In Australia we pay AUS$60 a year, but it's a cut down service compared to the US, and offers free but not-necessarily expedited shipping. We still get Prime video, which is the main reason I keep it (not because PV is that good, but it's cheap and if I want something from Amazon it's easy). If the price goes up too much here I will certainly reconsider my subscription, especially since there are plenty of other places that sell goods of comparable quality and price.

 

[Dark_Omen]

Seems like the contracted bridge work plenty good at collapsing too.

I’m not really arguing against the capitalism but simply keep the government big where needed and small where it is not. I do not think the markets are capable of maintaining a society without checks for public interest. Not everything has sufficient price signals to make the market react but they are needed. Like the example I made, there would not be a direct price signal for rural road maintenance so they’d likely go to ruin under a privatized system. Unfortunately, there are second, third, N-order problems that arise due to that market reaction that are deleterious for society as a whole.

Our toll roads where I live are maintained and plowed better than the regular roads. The system in place is basically privatized. I understand rural roads are a different story, though. I think we can compromise on your points.

 

[aforty]

I used to pay for Prime but I got rid of it a few months ago when they stopped offering free Whole Foods delivery.

It’s fine actually, orders over $25 still have free shipping and it just takes some planning around what you need. If I don’t need it quickly then I add it to my cart but don’t check out until I hit $25 or until there’s something I really need fast. Also subscribe & save always have free shipping.

 

[jlc1978]

I mean companies don't need to justify it. They can charge what they want. There's an equilibrium price, and also equilibrium demand that will eventually reverse into the negative territory once the price gets too high. Obviously, Amazon's analysts know this price hasn't been raised enough to justify the reversal of demand on their supply/demand graph, or else the price wouldn't be going up. The people who analyze this stuff for companies aren't stupid.

Equilibrium pricing is a bit different for Amazon's product range as for some things, such as video streaming, there is always a surplus in that they could easily add one more stream if it's demanded. The ultimate constrain in supply would be bandwidth but that really isn't a problem so supply is essentially unlimited.

Shipping, OTOH, has real supply limits. Trucks and planes are either full and packages sitting in where houses waiting to be shipped )excess demand due to low price) or not full and all packages shipped and the capacity is above that needed to allow for fluctuations in quantity shipped (excess supply due to high price). I suspect Amazon has excess supply, to cover fluctuations at least.

So what's Amazon to do? They need to price for maximum profit. That balances subscription revenue with profits from purchases. Subscribers probably buy more, given the "free shipping" nudge than non-subscribers. OTOH, some subscribers may find that the cost of a subscription is more than what shipping would cost them or are willing to wait a bit longer, and don't value Prime Video, etc., and drop their subscription. If they still buy as much the only revenue loss is the subscription, and if they pay for shipping on occasion some of that may be made up anyway. Amazon probably has enough data to make a pretty good guess where the price point is to get the desired revenue outcome.

If enough people stay with them to cover the lost revenue from people cancelling, they made the right choice for Amazon. It will come down to how Amazon Prime subscribers see the value in their subscription.

Amazon has bet the price increase will not be a net loss for them, and probably increase revenue. I suspect they are correct. Only time will tell.

You are free to take your money somewhere else, and that is the beauty of capitalism and competition. Those who actually think government-providing services or regulation must think the ultimate monopoly (government) is the best economic solution.

Not necessarily. There is a role for government to play, the question is what and how much? There are areas where government intervention is simply wrong, such as tariffs. Other times, such as developing orphan drugs, it is needed to meet demand.

 

[MistrSynistr]

This is classic because their shipping has gotten worse. Either doesn't come the day it's scheduled or gives you the 'arriving 12:00pm - 2:15pm' then you check at 2 and it's bumped to 4:45pm and on.

 

[webkit]

Well, I am absolutely okay with capitalism. They can charge what they want. And you're right, people can not pay it. But I was just saying that these increases are growing more and more harder to justify. I understand the stock market issue, and it would cause some devaluation, but in the end, would it take them down? I don't think so. As a matter of fact, if Amazon had come out and made some BS PR statement about how they were going to temporarily lower the price of prime to $9.99 because of COVID and the hardships a lot of people are going through, I think you might have seen a bump in stock, as so many more people would have rallied around the company and joined up.

I don't know. It's a convoluted mess.

“BS PR price statements” tend not to have lasting positive effects as far as stock values especially if they cause revenue or earnings shortfalls in the next quarterly report/release.

When it comes to pricing, there is also that "9" factor where companies want to have prices ending with a 9, 99, etc. (depending on total price). Amazon may have only wanted/needed a 12% increase which would've made the price a little over $133 but in order to have it end with a 9, they went with $139 instead. Practically all subscription prices in the U.S. end with a 9 (dollars and/or cents).

The 2022 Prime membership price increase is actually less than the one in 2018 as far as percentage increase (20.2% versus 16.8%) and after factoring in inflation but I'm sure customers complained and some dropped their memberships back then too. The customers still have the power in that sense, and should use it.

 

[rgwebb]

This is classic because their shipping has gotten worse. Either doesn't come the day it's scheduled or gives you the 'arriving 12:00pm - 2:15pm' then you check at 2 and it's bumped to 4:45pm and on.

This is why I have my prime subscription set to expire in July. I don’t blame Amazon for it because logistics have been screwed since March 2020. Still, their business model requires dealing with parcel delivery and it isn’t as smooth of a business model as it was prior to COVID.

Probably doesn’t hurt that The Expanse will no longer be on Amazon either but that didn’t weigh heavily on my decision. It really just comes down to their business model clearly not being sustainable under the current constraints of logistics infrastructure.

 

[Admiralbison]

Here’s a thought: why not pay for employee wage increases with less exorbitant profits, or more equitable employee remuneration across the organisation?

Bezos, executives and corporate shareholders are the priority. They get fed first.

working class - the ones who actually do the work - labor, services, produce, thoughts and ideas along with customers are somewhere at the bottom. Get the scraps.

 

[Mr. Chewbacca]

I have three or four alternate email addresses I use depending on how likely I figure the spam might be, and really ony monitor the one I use with the vendors I do want to hear from.

I also never give my primary email to anyone but friends/family. Been doing that for many years.



How so? Around here I can drop off the return at the nearby UPS store or the Amazon stand within Kohls department store. Show them the return QR code on my phone and get a drop-off receipt.

I wish I had reserved my primary email a long time ago. Too late to change it now. I am transitioning to my alt accounts but my primary is out there in hundreds of spam bot systems. Air mail does do a surprisingly good job filtering it.

I really do not like having to make a special trip to a specific place. Most places will let you just print a label, stick it on the box, leave it for the mailman. With amazon that is not even an option. I have to find time during business hours to make a trip to whole foods or the UPS store. If it's under $20 I wont even bother which is most likely part of the point.

 

[deeddawg]

I wish I had reserved my primary email a long time ago. Too late to change it now. I am transitioning to my alt accounts but my primary is out there in hundreds of spam bot systems. Air mail does do a surprisingly good job filtering it.

I really do not like having to make a special trip to a specific place. Most places will let you just print a label, stick it on the box, leave it for the mailman. With amazon that is not even an option. I have to find time during business hours to make a trip to whole foods or the UPS store. If it's under $20 I wont even bother which is most likely part of the point.

Yeah, once the cat's out of the bag on an email address it can be tough. Might be worth ripping the bandaid off and creating a new personal email - maybe on an alternate platform - and transition trusted sources over to that new one.

I get not wanting to make special trips to do a return. Fortunately there's a UPS store next door to a grocery store I often use, and they're open until 7pm. The Kohls drop off is along my commute when we were still going into the office so it was easy to stop in on the way home. If similar isn't the case for someone I can see it being more of a pain.

 

[jlc1978]

Yeah, once the cat's out of the bag on an email address it can be tough. Might be worth ripping the bandaid off and creating a new personal email - maybe on an alternate platform - and transition trusted sources over to that new one.

I have a simialr problem. My spam filter does a good job rejecting most spam, although some legitimate messages get caught. Besides using Apple's relay via iCloud, I use Gmail since the handle special chargetrs properly.

For example: first.last@ is the same as first.last+specialID@ so I can filter and sort based on the specialID. Downside is some brain dead websites fail to recognize first.last+specialID@ as a valid email; generally teh same ones that think first.last@ and firstlast@ are different addresses in Gmail...

 

[repoman016]

Wow that price hike is way too steep! Can Amazon please offer a ”skinny prime” option? I just want free fast shipping and no other perks.

Same. no video, no music, no nothing. All I want prime for is the shipping

 

[ackmondual]

Late to this party, but here's my situation... My main two draws of AP are the shipping/purchasing part, and the Prime Video part.

For the former, I've taken a quick look through my purchase history for the past few years. I haven't gotten into crunching the numbers with spreadsheets (at least yet), but it seems about "break even". I may come out ahead with the S&H fees I would've paid, or I may come out somewhat behind. I will miss having the option of "one-offs".. not having to worry about getting to the $25 (or $35) threshold for free super shipping saver, but this would be balanced out by not doing impulse buys. I will miss getting stuff in 2 days (3 to 5 days in pandemic times), but I could adapt to having 4 days tacked on. I'm told that returns are better to deal with with Prime, but I haven't had to use that yet, but will frankly take that chance.

For the latter, some of the content ain't too shabby considering they're not focused on on-demand streaming services. However, ever since I've gotten into other ones (Hulu, Disney+, Paramount Plus, and later on redeeming 3 months of Apple TV+), I've been appreciating the extra content and quality of dedicated streaming services. While I can afford to have many going on simultaneously, I could still stand to save the cash, and time is really the big bottleneck these days.

My verdict is to cancel Prime membership. I still have many months left, so I'll binge watch some key shows and movies (I likely won't have time to do more than half of it let's say), but if we feel we really do want back in, I can always just sub to just Prime Video for $9 a month. If I need the shipping, then I'll resub to AP to cover both ends

.

And then there's everything else...
--Music is commercial free, but I can still tolerate ads on YouTube
--Games are AFAI can tell, mostly bonus content (cosmetics, extra loot boxes, some new weapons/characters). I'm told they have full games available, but I have yet to find them (and even then, dunno if they'd be games I'm into)
--Photos.. no need for this

 

[dysamoria]

The first comment here says it all, really.

But I’ll say it again.

“Amazon says the increase will pay for the "continued expansion" of Prime perks, along with higher employee salaries and more expensive shipping costs.“

Riiiiight. They’re raising the price so they can maintain their current profit margins OR to actually increase profits. The above claims are bollocks. They’re not moving backwards in profits.

 

[ackmondual]

If my finances ever reach the point that a $2/month increase is even noticed, then I’d have bigger problems to worry about.

Another post mentioned that consumers working conditions at Amazon, the man behind the company, amongst other reasons.

As for the financial side of things, I can easily afford an extra $2 a month. However, Amazon Prime isn't the only thing that's gone up, so when you factor those in, they can easily add up. $2 here, $5 there, 5 other services that have gone up $3 recently.. you get the drift. If I were to cancel AP, that would free up $140 per year. I'm going to when it comes time to renew, and we'll see if I really do miss it

 

[dysamoria]

They cite the cost of the NFL contract in part. They should have made that an add-on subscription, but instead everybody has to pay for it whether you watch pro football or not.

We have reached cable TV again.

Congratulations, corporate greedies.

 

[ackmondual]

I think it is pretty ironic that people that buy apple products are complaining about another companies price increase.

FWIW, I've been doing both.

While I've been shopping on Amazon for the past 10 years or so (with some years having none. Even then, no more than 16 items per year), I've only been an AP member for a few years. I'm sure my post got lost in 12 pages of this thread, but the TL;DR version is I'm leaning towards cancelling AP when it's due to expire. Cut back on purchasing and combine shipping whenever I can. I'll binge watch what I can on Prime Video while I still have it (I have a few movies queued up, wrap up a TV series, and watch all seasons of The Expanse).

I purchased a 9th gen iPad gen recently, but everything else Apple... iPod Classic, iPod Touch 5, and a used iPad Air (1st generation from 2013) were all done more than 5 years ago. I prefer Android for phones and will stick with that thank-you-very-much

 

[mjdlight]

I don't think this has anything to do with inflation, COVID, or anything else, other than three letters: N.F.L.

Amazon just made a 1 BILLION dollar per year commitment to the NFL for a Thursday Night Football package for 10 years, 2022-2032.

On top of that, it is rumored that Amazon is the favorite to land the NFL Sunday Ticket package from DirecTV, whose contract with the NFL expires at the end of the 2022 season. That contract was 1.5 billion per year, signed in 2014 for 8 years. How much will it cost per year this go-round?