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UPDATE: Amazon to Raise Fees (7 days to lock in on Prime Pricing)

amazon prime fees

#1 GuyWithGun   CAGiversary! CAGiversary!   3105 Posts   Joined 12.6 Years Ago  

GuyWithGun

Posted 02 February 2014 - 11:53 PM

Looks like possible price increases all around.

 

http://www.nytimes.c...isappoints.html

 

 

Amazon has 237 million active customers but as a general rule makes almost no profit. Thursday’s announcement that the company was considering raising prices by as much as 50 percent on its $79 Prime shipping program could mean $500 million for its skimpy bottom line.
Thomas J. Szkutak, Amazon’s chief financial officer, said the price increase for Prime, if it happens, would be $20 to $40.

 

 

 ****************************UPDATE********************************

 

It's happening.  Announcement is on the Amazon home page.  If you are already a prime member you might not see the price change announcement on the home page, instead you have to go to your Account page and there's an alert there that explains the price change.

 

Get Prime within the next 7 days to lock in the $79 pricing.  After that the price will raise to $99.


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#2 Poor2More   CAGiversary! CAGiversary!   4008 Posts   Joined 10.9 Years Ago  

Posted 03 February 2014 - 12:14 AM

Amazon makes no money....I don't see how that is possible.
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#3 DestroVega   Life is short... stunt it CAGiversary!   7190 Posts   Joined 10.4 Years Ago  

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Posted 03 February 2014 - 02:49 AM

Raise prime. I'll drop it immediately. I used to pay no taxes no I do. Why would I keep it?

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#4 pitfallharry219  

pitfallharry219

Posted 03 February 2014 - 03:00 AM

I'd rather they get rid of the Prime streaming service rather than raise the price.


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#5 DNukem170   Banned Banned   8864 Posts   Joined 12.0 Years Ago  

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Posted 03 February 2014 - 03:06 AM

Amazon makes no money....I don't see how that is possible.


When you do free shipping even on heavy items and heavily discount those, I can see it.

Somebody please kill me.


#6 GBAstar   CAGiversary! CAGiversary!   9694 Posts   Joined 7.1 Years Ago  

Posted 03 February 2014 - 03:11 AM

I'd rather they get rid of the Prime streaming service rather than raise the price.

 

They need to get rid of all the BS loopholes that let the bottom feeders use prime without contributing anything.

 

 

They should have $39 to $49 yearly prime memberships for individuals and $79 to $99 for sharing up to 3 accounts.

 

Ban accounts that use prime to reship for their eBay business.

 

Close the .edu loophole for people that haven't been in college for years

 

Stop handing out credit on a whim



#7 GuyWithGun   CAGiversary! CAGiversary!   3105 Posts   Joined 12.6 Years Ago  

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Posted 03 February 2014 - 03:13 AM

I thought it interesting that they said that IF they were to raise the cost of Prime that it would be at least $20-$40.  If there is still an IF in there that means they still have a choice and options, which means they can choose to not raise it so much.


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#8 dohdough   Sum Dum Guy CAGiversary!   6836 Posts   Joined 8.5 Years Ago  

Posted 03 February 2014 - 03:57 AM

I don't see how $275 million in profit equals "(Amazon) makes almost no profit." Sounds more like major stock holders aren't happy with Amazon not meeting their profit projections for the quarter.
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#9 Yagami   CAGiversary! CAGiversary!   1202 Posts   Joined 9.3 Years Ago  

Posted 03 February 2014 - 04:02 AM

Truth be told while the cost of shipping has increased, so has Amazon's warehouses. They leverage that the item ships from a local warehouse, and it would be 2 day shipping regardless. (for example, sending something "ground" from almost anywhere on eastern half of the USA will usually be 2 days until delivery to Washington DC, there's no need to pay extra for 2 day rate)

 

At this point though it seems odd to have shipping + video service bundled. Would probably make people mad though that have prime through thier company and get free video streaming though xD



#10 eulogywerd21   Jesus wept CAGiversary!   2986 Posts   Joined 8.6 Years Ago  

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Posted 03 February 2014 - 05:10 AM

They need to get rid of all the BS loopholes that let the bottom feeders use prime without contributing anything.

 

 

They should have $39 to $49 yearly prime memberships for individuals and $79 to $99 for sharing up to 3 accounts.

 

Ban accounts that use prime to reship for their eBay business.

 

Close the .edu loophole for people that haven't been in college for years

 

Stop handing out credit on a whim

 

This shit right here. Amazon stretches itself thin trying to get everyone and their mother to use Prime, whether they're paying for it or not, and the real subscribers, like us, actually foot the bill.


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#11 KaneRobot   The Profit$ of Doom CAGiversary!   10460 Posts   Joined 14.1 Years Ago  

Posted 03 February 2014 - 09:31 AM

If forced, I guess I'd be ok with paying 20 bucks more. I certainly use it enough.

But I could probably live without the streaming service, so if dumping that would keep the price closer to where it is, I'd prefer that. If anything I'd rather they give me more cloud player storage for being a Prime member. Yeah, I know Google gives you way more for nothing, I just slightly prefer Amazon to Google Play as far as actually using it for music playback and downloading...but Amazon's free-level cloud player storage is pretty pathetic as far as space restrictions.

More than all of that though, I agree with the post suggesting they get rid of all the fucking leeches and freeloaders that are using it for Ebay shipping and making college accounts years after the fact.
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#12 Burning Karma   Ready for the mosh pit, shaka brah CAGiversary!   775 Posts   Joined 7.7 Years Ago  

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Posted 03 February 2014 - 03:41 PM

I'd rather they get rid of the Prime streaming service rather than raise the price.

Exactly. I hardly ever use it.

 

Maybe this is all to pay for the drones. :rofl:


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#13 dmaul1114   Banned Banned   24688 Posts   Joined 12.9 Years Ago  

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Posted 03 February 2014 - 06:51 PM

Yeah, I doubt I'd keep it if the price goes up at all.

 

I have most things shipped to a P.O. Box now as we kept having packages stolen off our doorstep at our new place.  Prime just gives free standard shipping to P.O. boxes--so usually 3 or 4 business days instead of one or two.  Borderline worth it for the $79 a year, definitely not worth any more than that.  We don't use the streaming much anymore since we just started using my parent's Netflix log in as their selection is better.


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#14 CaseyRyback   Your New Nightmare! Super Moderators   24181 Posts   Joined 14.2 Years Ago  

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Posted 03 February 2014 - 07:12 PM

Amazon does have a good amount of unique streaming content but their apps on consoles and bd players are terrible and there is no excuse for not having an android app.

They need to improve that stuff if they want me to keep it.

#15 Sarang01   My Use Name Is Saber CAGiversary!   5585 Posts   Joined 13.5 Years Ago  

Posted 03 February 2014 - 07:44 PM

I wouldn't mind paying $100 for Prime but not $159.  If it doubles to that I'm gone unless they REALLY improve the streaming offerings.  I mean I like all the silent films they have now but it should be updated to HD in the process.


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#16 shrike4242   Not My Job Anymore, Go Bother Someone Else. CAGiversary!   49862 Posts   Joined 13.5 Years Ago  

Posted 04 February 2014 - 06:00 PM

Amazon already removes people who have unusual, re-seller like patterns from Prime and they have requirements for Amazon student:

 

(1) have an Amazon.com account, (2) be a college student actively enrolled in at least one course at a college geographically located in one of the 50 United States, the District of Columbia, or Puerto Rico, (3) be able to provide proof of enrollment upon request and (4) have a valid e-mail address that contains the domain suffix .edu

I had a couple of emails from Amazon about this type of behavior for something I did for work that required purchasing multiple items and shipping them out to numerous recipients, plus sending items from Amazon to employees out in the field.

 

They do audit it and they do check on it, and after a good explanation, they were fine with it and thanked me for the explanation.

 

I'm sure this will start getting checked more regularly and will get tighter on booting people out that are abusing Prime.



#17 QiG   I'm all out of gum.. CAGiversary!   2866 Posts   Joined 11.0 Years Ago  

Posted 04 February 2014 - 10:51 PM

Considering it hasn't gone up in price from $79 when it was introduced 9 years ago, I wouldn't have a problem swallowing another $20; but more than that and I'm most likely out. A few of my packages were ultimately given to a regional courier and I had my doubts given some of the horror stories posted in their reviews but I've never actually had a problem. I think they've done a good job of introducing value-added services to it as well (Instant Video, Kindle borrowing, etc) and with the cost of fuel and other aspects of delivery service on the rise, a rate hike had to be expected. 

 

I could also see the low margin coming into play as well. We're often swapping stories of price matching and being given credit for problems that most companies would snub us on.

 

Don't get wrong though, I'll show my age when I say that a part of me still remembers my angst from when "Free shipping" went from an internet standard to just being a memory altogether. 


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#18 Sepioth   CAG Veteran CAGiversary!   802 Posts   Joined 8.7 Years Ago  

Posted 06 February 2014 - 05:12 AM

Amazon has no profit yet buys a gaming studio.



#19 Navex   The Media Jerk CAGiversary!   1173 Posts   Joined 5.2 Years Ago  

Posted 06 February 2014 - 12:38 PM

Amazon has 237 million active customers but as a general rule makes almost no profit.

That's pure BS. I don't know who wrote that article but that's financially not even possible. To have a business you absolutely have to have a profit. So general rule my ass. They're also one of the biggest online retail websites in the world so please spare me this crock they aren't making profit.

 

I'm not happy about them raising Prime but honestly as much shopping as I do there I don't mind. As long as you're spending more than what you pay for Prime there in a year you're getting an excellet deal since you aren't paying shipping on anything and getting it in 2 days. 3.99 for next day still, yeah, but that is ridiculously cheap and worth it when you compare it to their regular costs or competitors. I'm concerned with them raising their general merch prices though as thanks to almost every state following suit pretty much every state requires Amazon to tax now so I've been feeling it since Fall. One of the biggest draws to Amazon was they didn't tax and now that they are they are not always the first place I go to for things now with that added cost and if they start raising everything else they will no longer be my one-stop place like they have for years.

 

I also agree with the poster that said they need to tighten their Prime free policy and get rid of the exploiters. I always knew loopholes existed but didn't give a shit as long as nothing affected me but it's clear Amazon has stretched themselves too far with all these Prime shortcuts that people are using against them now. I'm sure I won't be popular with this next idea but they really need to can the free Prime for students too. That's one of the primary ways people are exploiting them and it just needs to go. At least what they should do if they won't get rid of it is offer it at a reduced fee or put limits on it. It's a premium service that people pay for and I don't believe you should get it for free just because you're going to school. Whatever they end up doing, they shouldn't leave it as is as that's not something that should be free.



#20 GBAstar   CAGiversary! CAGiversary!   9694 Posts   Joined 7.1 Years Ago  

Posted 06 February 2014 - 12:43 PM

^ Amazon should limit free student prime to textbooks, school supplies, computers and high margin items. I can't see that program being profitable for Amazon at all and as you said that is the biggest exploit available. I know they have tightened the restrictions (you used to be able to register bogus .edu accounts and extend your service indefinitely) but now I think they require some sort of documentation that you're taking classes.

 

I just don't see the appeal to Amazon though of giving students free shipping unless it's a goodwill PR thing; I mean at times they'll even have "student only" discounts on things



#21 Access_Denied   CAGiversary! CAGiversary!   2835 Posts   Joined 10.5 Years Ago  

Access_Denied

Posted 06 February 2014 - 03:38 PM

That's pure BS. I don't know who wrote that article but that's financially not even possible.


You should check your facts before ranting and raving about people lying. In Q3 2013, Amazon posted a $41 million loss, despite sales going from $13 billion to $17 billion. Just because they do a lot of business doesn't mean they make a lot of money, especially when your profit margin is as low as Amazon's.

#22 JetTone   Life CAGiversary!   2759 Posts   Joined 12.1 Years Ago  

Posted 06 February 2014 - 05:51 PM

Oh I guess Amazon only operates 3 month out of the year. I guess the other 3 quarters don't count in which they made $300 million or so. 

 

Profits in every business are "paper-thin" but let's be honest when you're making hundred of millions a year your profits aren't anything to worry about if you maintain a smart, competitive business which Amazon is doing. But if Amazon actually starts losing money in the future it will be because they failed to adapt and people will have moved on so it wouldn't matter to the end consumer anyways.



#23 Navex   The Media Jerk CAGiversary!   1173 Posts   Joined 5.2 Years Ago  

Posted 06 February 2014 - 06:41 PM

You should check your facts before ranting and raving about people lying. In Q3 2013, Amazon posted a $41 million loss, despite sales going from $13 billion to $17 billion. Just because they do a lot of business doesn't mean they make a lot of money, especially when your profit margin is as low as Amazon's.

They still made a profit. Any company has losses, very few don't have internal revenue loss unless they're named Wal-Mart whose numbers only keep going up every year. I'm not wrong since they still made a profit and factually you HAVE to make a profit to even hold down a business so please spare me your economics 101.



#24 Confucius   Corporate Shill CAGiversary!   16261 Posts   Joined 9.7 Years Ago  

Posted 07 February 2014 - 12:51 AM

They still made a profit. Any company has losses, very few don't have internal revenue loss unless they're named Wal-Mart whose numbers only keep going up every year. I'm not wrong since they still made a profit and factually you HAVE to make a profit to even hold down a business so please spare me your economics 101.

You're just embarrassing yourself now.  Stop.

 


Oh I guess Amazon only operates 3 month out of the year. I guess the other 3 quarters don't count in which they made $300 million or so. 

 

Profits in every business are "paper-thin" but let's be honest when you're making hundred of millions a year your profits aren't anything to worry about if you maintain a smart, competitive business which Amazon is doing. But if Amazon actually starts losing money in the future it will be because they failed to adapt and people will have moved on so it wouldn't matter to the end consumer anyways.

 

 You think those "profits aren't anything to worry about?"   $300M profit on their revenue is terrible.  $300M might sound like a lot but not when your market cap is 165B and you have sales of 75B.  If you told investors, amazon was going to make $300M a year from now on, they'd dump the stock in a blink.  

 

I had a couple of emails from Amazon about this type of behavior for something I did for work that required purchasing multiple items and shipping them out to numerous recipients, plus sending items from Amazon to employees out in the field.

 

They do audit it and they do check on it, and after a good explanation, they were fine with it and thanked me for the explanation.

 

I'm sure this will start getting checked more regularly and will get tighter on booting people out that are abusing Prime.

Are you sure they actually contacted you and let you explain? From what people who get banned say, you would think Amazon just drops the ban hammer on you without giving you a chance!  And for returning like 2 things!

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#25 shrike4242   Not My Job Anymore, Go Bother Someone Else. CAGiversary!   49862 Posts   Joined 13.5 Years Ago  

Posted 07 February 2014 - 05:12 AM

 

Are you sure they actually contacted you and let you explain? From what people who get banned say, you would think Amazon just drops the ban hammer on you without giving you a chance!  And for returning like 2 things!

 

Yes, they did actually contact me.  The email was that my buying patterns weren't in line with the TOU for Amazon Prime, they were reviewing the situation and wished to get my input on what the situation was that seemed out of line with the TOU of Amazon Prime.  I sent off my email reply, they replied to my email, I replied to their second email and they thanked me for taking the time to clear up the situation. 

 

I had legitimate reasons to why I was ordering items from Amazon and then shipping them out to different individuals that weren't in line with the other locations I've had past ordering history with, plus other new locations that were getting repeated shipments sent to.  It was a one-time need for work and I explained it in detail to Amazon, plus the new additional locations getting orders.

 

I did get the idea that if I didn't have a reasonable explanation for the change in shipment habits, they would have ended my Prime membership for my work.  That came across quite clearly in the initial email.    Then again, since I was a corporate customer with an Amazon credit line, numerous past months of thousands of dollars of orders in a row, and multiple years of order history.  That established history that had this situation show up as an anomaly, that probably had something to do with it as well and why they were making an inquiry and not banning the Prime membership without some explanation.



#26 Jaysonguy   Mr. Wonderful CAGiversary!   1386 Posts   Joined 8.5 Years Ago  

Posted 07 February 2014 - 08:11 PM

wrong thread lol


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#27 equistina  

Posted 22 February 2014 - 04:31 PM

They need to get rid of all the BS loopholes that let the bottom feeders use prime without contributing anything.


They should have $39 to $49 yearly prime memberships for individuals and $79 to $99 for sharing up to 3 accounts.

Ban accounts that use prime to reship for their eBay business.

Close the .edu loophole for people that haven't been in college for years

Stop handing out credit on a whim


This 👏

#28 GuyWithGun   CAGiversary! CAGiversary!   3105 Posts   Joined 12.6 Years Ago  

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Posted 13 March 2014 - 02:11 PM

Well, it's happening.  Keeping it sub-$100 for Prime.  At least they realized that there was probably going to be a huge psychological barrier at the $100 point that would lose them a lot of customers.


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#29 SquallX41269   CAG Veteran CAGiversary!   66 Posts   Joined 8.1 Years Ago  

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Posted 13 March 2014 - 02:48 PM

I'm okay with paying the extra $10 for the student rate. If i was paying the regular rate; wouldn't mind spending the extra $20. Considering how much stuff there is available for two-day ship (and now with a new warehouse even closer to my location) I've been getting a lot of stuff next day,for free.


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#30 benjamouth   Thanks Larry Davis for the sig !! CAGiversary!   7549 Posts   Joined 12.1 Years Ago  

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Posted 13 March 2014 - 02:55 PM

So I'm locked in at $79 till 2015, when it goes to $99.

 

Not sure I'll even keep it for this year at $79.


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