I don’t think Amazon Prime, the online giant’s subscription service, is worth the price.
After all, while Amazon says more than 100 million people now use that service, it doesn’t come cheap. From May 11 Prime’s annual price will jump from $99 to $119.
Amazon says this is justified because Prime now comes with additional benefits that weren’t available when it was first offered. Speaking to MarketWatch, a company spokesperson stated, “Since we increased the U.S. annual price of Prime four years ago, both the value of Prime and the cost to offer it have increased significantly, we still believe that Prime is disproportionately more valuable than the fee.”
But what Amazon doesn’t admit here is that the online marketplace is increasingly competitive.
Enter Walmart, which is actively challenging Amazon’s business model by offering a wide range of goods at cheap prices. Walmart also offers its own distinct benefits like free two-day shipping for purchases over $35. This has forced Amazon to copy Walmart’s offer of free shipping: although not on a two-day delivery basis.
Google Shopping and Bing Shop also offer user friendly websites that offer a range of everyday goods.
Now don’t get me wrong, Amazon is still a great company with great products. But is it so great that you should pay $119 a year just to get two-day shipping? I mean most of us probably spend more than $35 each time we order things from Amazon, so if we’re willing to wait a little longer then is Prime’s $119 subscription fee really worth it?
I also don’t buy into the idea that Prime’s offering of TV shows is that good: it doesn’t have Netflix’s Black Mirror, for one!
Of course, I can see why Amazon is so confident. Its latest earnings were significantly better than projected and CEO Jeff Bezos is determined to expand by building a new super headquarters and breaching into the grocery industry.
Still, I say keep your $119.
