By Shannon Frost Greenstein
If you’re anything like me, you have a slight dependence on Amazon Prime.
After all, free 2-Day shipping, plus original programming and access to music??? It’s clear why Prime membership has taken off in recent years.
However, despite its clear cost-saving benefits, the yearly subscription fee…$99…may still be out of reach for many lower-income families. To mitigate that, and attract these consumers who can manage small payments but not a large yearly fee, Amazon came out with a monthly payment option about two years ago. These payments of $10.99 are charged in monthly installments.
Amazon announced today, however, that the cost of the monthly subscription service will be increasing to $12.99…an increase of nearly 20%. It means the typical family who pays by the month will end up paying almost $156, as opposed to the $99 yearly subscription service which is remaining unchanged.
While this makes sense from a business standpoint…the Prime shipping and programming has increased costs for Amazon, and the $10.99 is simply not sustainable…it appears to contradict the whole reason monthly payments were introduced. Families who cannot afford a one-time payment probably cannot afford a price increase of over $50, and, if you’ve ever been in a position where you’ve had to watch your pennies, you’d know that every extra dollar spent has an impact.
Amazon will certainly receive some backlash over this move, and even more so because they are raising the price of student monthly subscriptions, too! Seriously, like students can afford an 18% increase???
What do you think about Amazon’s new prices?