Amazon Raises Cost Of Prime Membership Following Strong Q4 Earnings

Amazon announced a price increase for its Prime membership, raising the annual fee from $119 to $139 and the monthly fee from $12.99 to $14.99. This is the first price hike since 2018, attributed to rising costs and expanded services. The discussion with Josh Lowitz highlights that the price increase is a strategic move to maintain profitability as Amazon's services, like Prime Video and faster shipping options, have grown. The company has historically raised prices every few years, and the expansion of services has led to increased costs, including logistics and warehouse operations. The incremental price adjustments are seen as necessary to avoid larger hikes in the future.

What is the new annual cost of Amazon Prime after the recent price increase?

• $139

• $119

• $159

• $99

According to Josh Lowitz, what is one reason Amazon can raise the price of Prime?

• They are losing customers

• They have expanded their services

• They want to reduce shipping times

• They are facing legal issues

What additional service has been added to Amazon Prime that justifies the price increase?

• Amazon Prime Video

• Amazon Kindle

• Amazon Music

• Amazon Fresh

How has Amazon managed to reduce the marginal cost of shipping?

• By increasing delivery times

• By reducing the number of warehouses

• By outsourcing deliveries

• By improving logistics

Why does Amazon prefer incremental price increases for Prime?

• To avoid losing customers

• To prevent large future hikes

• To compete with other services

• To increase the number of subscribers