topic Re: Amazon Prime increase in Community Chat

Amazon Prime increase

SeaMaiden — Thu, 03 Feb 2022 23:28:11 GMT

(from The Seattle Times)

Amazon is increasing the cost of its Prime membership, in part to offset rising expenses associated with wages and transportation.

Amazon is increasing the cost of its Prime membership for U.S. customers, in part to offset rising expenses associated with wages and transportation, the company announced ahead of its quarterly earnings call Thursday.

The monthly fee for Prime membership will go up from $12.99 to $14.99, and the annual membership from $119 to $139.

The price change — Amazon’s first since 2018 — will go into effect on Feb. 18 for new members. For current Prime members it will apply after March 25, on the date of their next renewal.

“As expected over the holidays, we saw higher costs driven by labor supply shortages and inflationary pressures, and these issues persisted into the first quarter due to Omicron,” Amazon CEO Andy Jassy said. “Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic.”

Amazon saw more than $4 billion in costs from “inflationary pressures” and lost productivity in operations, said chief financial officer Brian Olsavsky. The company isn’t having trouble hiring, he said, but is having trouble keeping workers on the floor. Many have had to call in sick and others have filled in for colleagues, racking up overtime hours and overtime pay.

“We’ve shown that we can hire well, we just have to get everyone healthy and regain our productivity from all the investments we’ve made in people and capital over the last couple years,” Olsavsky said Thursday. “We’re seeing those costs trickle into Q1 as well.”

Re: Amazon Prime increase

tansy — Thu, 03 Feb 2022 23:41:48 GMT

I will have to reconsider if that'sworth it for me. Most of what I buy on Amazon are gifts for the g-kids.

Re: Amazon Prime increase

Shelbelle — Thu, 03 Feb 2022 23:35:29 GMT

I dont have it, I keep my orders at $25 so free shipping. And I often find much better prices elsewhere.

Re: Amazon Prime increase

MamaWick — Thu, 03 Feb 2022 23:37:45 GMT

I would spend more than $140 a year in shipping, so I will renew. The movies/shows are a plus.

Re: Amazon Prime increase

Porcelain — Thu, 03 Feb 2022 23:41:50 GMT

Amazon did do a great job getting items out to people over the holidays. People were predicting mass chaos and shortages and that did not materialize. They planned well so I will give them that.

I'll probably keep Amazon Prime, even with the price increase. Never having to pay shipping is worth it to me.

Re: Amazon Prime increase

SilleeMee — Thu, 03 Feb 2022 23:42:08 GMT

For me it's not difficult at all to rack up at least $25 worth of stuff and have it shipped for free. Now that my city has a brand new Amazon Distribution center that means my orders are at my door really fast. I like that!

Re: Amazon Prime increase

SeaMaiden — Thu, 03 Feb 2022 23:46:42 GMT

Not sure what would be the cut off price yearly price for me to drop it....$500 maybe?....

Re: Amazon Prime increase

fthunt — Thu, 03 Feb 2022 23:46:55 GMT

They have to pay for those new big black delivery vans with the smile on the side. Hire drivers pay for insurance..........UPS & Smile pass each other daily in my neighborhood. That cost $$$$

Re: Amazon Prime increase

songbird — Thu, 03 Feb 2022 23:48:36 GMT

@MamaWick wrote:
I would spend more than $140 a year in shipping, so I will renew. The movies/shows are a plus.

I agree. We'll continue with it. We joined it years ago when it was first offered. We use it a lot. Yes, we watch the movies and the series. It's still worth it.

Re: Amazon Prime increase

greenjean1 — Thu, 03 Feb 2022 23:49:41 GMT

@MamaWick wrote:
I would spend more than $140 a year in shipping, so I will renew. The movies/shows are a plus.

I agree. We love the movies, books and prompt shipping.

Re: Amazon Prime increase

chickenbutt — Thu, 03 Feb 2022 23:50:29 GMT

I guess I lucked out, because mine renewed end of January so one more year.

It's still pretty worth it. I get way more back on my card for the year than the annual fee, plus no shipping on orders.

Re: Amazon Prime increase

MG Chris — Thu, 03 Feb 2022 23:58:42 GMT

@chickenbutt wrote:
I guess I lucked out, because mine renewed end of January so one more year.

It's still pretty worth it. I get way more back on my card for the year than the annual fee, plus no shipping on orders.

New too! I will keep renewing mine just renewed a couple of days ago.

Re: Amazon Prime increase

JaneMarple — Fri, 04 Feb 2022 00:15:13 GMT

@tansy wrote:
I will have to reconsider if that'sworth it for me. Most of what I buy on Amazon are gifts for the g-kids.

The same with me @tansy but i usually only get it for a week or two. The last time that I used Amazon Prime I payed $12.99 for the week. and I bought several items.

Re: Amazon Prime increase

gidgetgh — Fri, 04 Feb 2022 00:16:44 GMT

Mine just renewed in January 29th.

Re: Amazon Prime increase

Sooner — Fri, 04 Feb 2022 00:18:37 GMT

We have a center nearby in OKC so we get so many things overnight. It's worth it for so many things we might need in a hurry--otc medicine, light bulbs, things like that you run out of and need in a hurry.

Re: Amazon Prime increase

ValuSkr — Fri, 04 Feb 2022 00:22:11 GMT

The first article I read today about the price increase blamed it on Amazon's acquiring the rights to Thursday night football, among other things. That seemed sure to inflame a segment of Amazon's subscribers. Later articles, including the one from @SeaMaiden , simply cite inflation and higher labor costs. That seems like a more sensible approach - one that most people will understand even if they don't like.

Re: Amazon Prime increase

pdlinda — Fri, 04 Feb 2022 03:03:34 GMT

@chickenbutt I agree. I have the 5% back Chase Amazon card and received about $400 back last year so it's worth it to me to keep my Prime.

In addition, with the difficulties with shipping and managing returns from QVC and HSN, the Amazon shipping and return policies mean a lot to me. While it may take a MONTH for HSN/QVC to credit my acct on a return (HSN used to be better but recently I had 2 very bad experiences dealing with them), Amazon makes returning items (I return very little) a SNAP.

I had several return items that their CS instructed me to keep while crediting my acct. Other times, I didn't even have to wrap the item, just use the QR code on my phone and drop it at Whole Foods where I can shop after returning.

Because of the return and shipping issues, I find myself shopping Amazon more and more. I would prefer spreading my purchases to other retailers; however, I appreciate the hassle-free (minimal) experience of shopping on Amazon (including their excellent CS) so I'll stick with them for the immediate future.

Re: Amazon Prime increase

icezeus — Fri, 04 Feb 2022 00:34:10 GMT

I just checked to see when mine renews. I thought it was in May but it's actually March 26th. I guess I will be stuck with the higher price. I will definitely renew. I use Amazon all of the time.

Re: Amazon Prime increase

Another new name Sue — Fri, 04 Feb 2022 00:47:31 GMT

Besides free shipping, don't members also get the streaming movies through Roku, Apple or whatever?

Re: Amazon Prime increase

Scooby Doo — Fri, 04 Feb 2022 00:49:34 GMT

That's less than $2 a month, so no big deal for me.