An estimated 150 million Americans are members of Amazon Prime’s shopping club, making it one of the most popular paid technology services in the United States. Most Americans are members, and many can’t imagine giving up the ability to order stuff on a whim and have it delivered quickly for no added cost.
I’m asking because some of the financial experts who follow Amazon have been speculating that the company may soon raise the price of a U.S. Prime membership.
Prime’s most recent cost increase in the U.S. was about four years ago, when the price rose to $119 from $99 for most people who pay annually. The prior Prime price increase was four years before that, meaning that it might be time for another bump. (Amazon hasn’t said one way or another, and its public relations department didn’t respond to my questions on Tuesday.)
People walk away from some products when prices go up, but it seems that almost no one quits Prime. Among Americans who have been Prime members for at least two years, nearly 98 percent of them keep renewing, according to Consumer Intelligence Research Partners or CIRP, which surveys people for brands and investors.