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

[munpip214]

Not sure if anyone has mentioned this but with prime I get 5% (sometimes 10% promo) back on Amazon credit card as opposed to 2%. So for me, along with the other perks, it saves me money by paying for prime.

 

[sw1tcher]

Amazon's net profit jumped nearly 57% in 2021 to $33.4 billion, due in part to the lingering effects of the global health crisis, which has had a positive effect on Amazon's core shopping business.

Wowzers. This is such a terribly misleading statement.

Yes, Amazon's net income for 2021 was $33.364 billion. But most of that ($18.532 billion or 55.5%) came from Amazon Web Services (AWS), not their core shopping business. The core shopping business profit was only $6.347 billion (19% of total net profit) for 2021. And Amazon's core shopping business would have resulted in a loss of $1.833 billion for the 4th quarter (and a loss of $31 million in the 3rd quarter of 2021) if it weren't for AWS.

 

[docbop]

Prime has been worth it for me especially in current times. I am ordering more things I used to go out for. The free videos and TV shows have keep me entertained, sure it's not all grade A stuff, but it's entertaining. Music and fast delivery. I see others paying more per month just on movies and etc than I pay for a year of Prime. Nobody likes price hikes, but I'm fine with it Prime is a good to for me.

 

[turbineseaplane]

with prime I get 5% (sometimes 10% promo) back on Amazon credit card

A lot of us (probably most) have other cards we prefer.

I'm not surprised that it's a good deal (that keeps getting better) the more you let Amazon sink their teeth into your financial life.

Me?
I'm the opposite
I want as little of this company in my life as possible at this point.

 

[sw1tcher]

So their net profits jumped 57% to $33 billion but they have to charge customers more to increase salaries, if this comes to the UK I'll cancel my membership.

This big corporate greed at the time where 99% of the world are just starting to recover from the last two-year slump is, frankly, repulsive.

Raising customers prices to pay for staff pay increases, when they're earning the kind of profits that they're reporting, and paying Jeff Bezos (and the rest of the executive team) what he's being paid, is sickeningly greedy. I shouldn't be surprised.

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

Like many of the big the big tech companies, deep down Amazon is just evil. Greed layered upon greed, by either Bezos or his henchmen or the stockholders.

And Apple's net profit for fiscal year 2021 jumped 64.92% to $94.680 billion. And they also saw their gross margins increase from upper 30's percentage to low 40's percentage.

Strange how everyone is thrilled and cheering for Apple in the MR comments when Apple reports blow out numbers, but when it's someone else, there's a totally different reaction.

 

[indychris]

I'm guessing that this means my packages will now start showing up at the stated day/time?

 

[sw1tcher]

Based on recent patterns about 3 years but I suspect it will pass $150 and move to $155 or $160 next.

If you're using patterns, then it'll go up to $159 in 4 years. That's an increase of $5 per year.

2026 : $139 --> $159???

2022 : $119 --> $139
2018 : $99 --> $119
2014 : $79 --> $99

 

[kuwxman]

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

Others may have flooded your inbox with this already too, so I apologize...but free shipping is an option even without the Prime membership. The only requirement is to hit the $25 or $35 threshold (can't remember what its at now). Combining what would have been 1-3 'old' orders in to 1 'new' order wouldn't make it hard to hit that.

We've had Prime for years, over a decade probably. But we're not renewing our membership this month. Just isn't worth it, since like you, we only use it for the "free" shipping. Don't watch Prime Video. Don't use Prime Music. Wife pays for Kindle Unlimited separately. On and on.

 

[WiseAJ]

Not sure if anyone has mentioned this but with prime I get 5% (sometimes 10% promo) back on Amazon credit card as opposed to 2%. So for me, along with the other perks, it saves me money by paying for prime.

If you have prime and use it a lot you should definitely have/use this card. It's so wonderful the 5% back even applies to the prime membership fee.

 

[FattiesGoneWild]

My renewal is coming up in a couple days on the 6th. I never get my stuff half the time now a days on time. This just made it easier to cancel. $5-$10 increase sure. But, $20 increase while profits up 57% $33+ billion. Nope!

 

[sw1tcher]

My renewal is coming up in a couple days on the 6th. I never get my stuff half the time now a days on time. This just made it easier to cancel. $5-$10 increase sure. But, $20 increase while profits up 57% $33+ billion. Nope!

It is a $5 increase (per year) since they haven't raised the price since 2018. But whatever.

By the way, Apple's profits went up 64.92% to $94.680 billion and their margins went up too in 2021. Have you cancelled Apple yet? Nope.

I get it though... Amazon Prime is not needed as much as a new Apple product.

 

[Rainshadow]

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

I canceled primed on the last price hike. I still get free shipping it just takes 1 more day. There are even times when I would get a package faster than it would estimate. Paying for prime doesn’t pay your shipping. It pays for the other services. I haven’t regretted canceling even once.

 

[turbineseaplane]

I haven’t regretted canceling even once.

Same

Anyone reading this and thinking about it... "just do it"

 

[kuwxman]

Same

Anyone reading this and thinking about it... "just do it"

Just did it.

 

[kalafalas]

I wish I could pay for a cheaper tier of prime that didn't include all the ""continued expansion" of Prime perks", I don't use prime music or prime video and would be happy to be rid of them to get the price back under $10 a month. all I want is the shipping perks.

 

[siddavis]

Yes, companies should be able to make a profit so they can carry on existing, thats a given BUT there is a huge huge difference between making enough profit to cary on existing and making enough profit so they can be greedy. Amazon is being 100% greedy. Amazon could easily fund any price rises it faces due to economic instability and still end up being in profit but they and like with many others, they would rather get their customers to fund any price rises than for the company to use any of it's profits. There is profit and then there is greedy profit. A huge majority of the worlds businesses go for greedy profit and the muggins customers allow them to do it. 'Vote with your wallet' comes the cries and you know what, it never happens.

It never happens? Actually, it happens every. single. day. People pay for what they find value in, and stop if they don't. (Caveat being things that do not have alternatives - Prime not being one of them). For me, I no longer find value in my Prime subscription and will be canceling.

 

[Mirachan_007]

UNACCEPTABLE!!

 

[siddavis]

The latest history has been $20 every 4 years (2014, 2018, and now 2022). No reason yet to expect the next $20 increase prior to 2026.

If you look at it it’s cost has been increasing much less than Netflix has (which is like $1-2 a month every 18 months)

Yeah it’s sucks, but when you’re dealing with service that involves actual humans for actual tasks like shipping and delivering those costs tend to rise with inflation. Or do you still want your Amazon driver being treated like slave labor and pissing in a bottle in between stops?

You state no reason to expect another increase prior to 2026, then cite inflation. There is your reason.

 

[filchermcurr]

You guys act as if you’ve never heard of inflation before. This is still a good price for all the services included. I would LOVE to see the ones complaining start a business while keep that same energy of never needing to increase prices lmao. Get real

It is a pretty good business model. Hoist useless services on me so I'm forced to pay for the whole set rather than paying a reduced price for the one that I actually want.

"Well I'm sorry electricity costs so much! But you're also getting amazing benefits like real time skunk tracking, a monthly credit to promote your favorite local retailer on AM radio for eight seconds, shoe shining at any of our one convenient locations, access to our extensive basement VHS collection, and so much more!"

Sometimes you just want electricity.

 

[WiseAJ]

You state no reason to expect another increase prior to 2026, then cite inflation. There is your reason.

There is always inflation. which is why it was increased in 2014, 2018 and now 2022. No reason to expect another increase prior to 2026 based on this pattern. Can they? Sure? But do I expect them to? No.

 

[CoMoMacUser]

This is going to be replicated across many industries across the world because companies are not going to be prepared to take a hit on their profits. Any rises for the company, be it rent, utility costs, taxes, insurance, employee wage increases will all be paid for by the customer in the form of increases in the cost of the service that it provided to them. Amazon will increase their prices to their customers but you can be damn sure that when they are to produce their yearly figures it will show they did not take any hits on their profits.

That's good news for all of the people with those companies in their retirement accounts. People with Amazon in their portfolio could earn back that $20 -- and then some -- in short order.

 

[BugeyeSTI]

Only time I become Prime member is when they offer me a free trial..

 

[siddavis]

As for the profit, no, there are different level of profits. If all it takes for a company to survive and keep on surviving is to make $1 million in profit a year then why would that company need to make $11 million profit a year if all it takes to keep on surviving basically paying staff wages, paying ground rent, utility bills, taxes, distribution costs, shipping costs is $1 million a year in profit, which also means having extra to put away in the bank, then why need $11 million or even more.

You've clearly never run a business.
And who gets to decide the appropriate levels? Some central planner who can't possibly understand all of the unbelievably complex intricacies? I know a group that is usually very efficient - consumers.

 

[WiseAJ]

My renewal is coming up in a couple days on the 6th. I never get my stuff half the time now a days on time. This just made it easier to cancel. $5-$10 increase sure. But, $20 increase while profits up 57% $33+ billion. Nope!

Your renewal is before the price increase so you could still pay the old rate for one more year.

 

[Raebo]

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