Amazon has a Prime number problem
Amazon.com has a problem with its hugely successful Prime membership program — namely that the program is hugely successful. The e-tailing giant recently raised the price of the annual subscription program, which offers free two-day delivery service to members along with other perks, from $79 to $99. But Prime is an expensive program to run and now Amazon is offering credits to wait longer for their deliveries.
According to CNET, Amazon is now offering a $1 credit toward an Amazon Instant Video for Prime members willing to wait five to seven days to receive their shipment instead of the typical two.
Last week, Amazon reported a loss of $126 million for its second quarter, more than offsetting its profit of $108 million during its first quarter.
- Amazon offers Prime members video credit for slower shipping – CNET
- Amazon.com Announces Second Quarter Sales up 23% to $19.34 Billion – Amazon.com, Inc.
- Amazon.com Announces First Quarter Sales up 23% to $19.74 Billion – Amazon.com, Inc.
- Amazon Will Pay You to Accept Slower Deliveries – Time
- How to get $1 free video credit with every Amazon Prime purchase – Cult of Mac
Does Amazon’s $1 credit for slower deliveries suggest problems with its Prime service? Will the pressure on the company following its second quarter loss lead to cuts in Prime services or other areas?