DISCUSSION

Amazon has a Prime number problem

Written by George Anderson

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.

Discussion Thread0