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Poll: Nearly Half Of Amazon Prime Members Would Not Renew If Cost Rose To $150

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Poll: Nearly Half Of Amazon Prime Members Would Not Renew If Cost Rose To $150

Amazon.com, Inc. (NASDAQ: AMZN)'s Prime members spend an average of $1,300 a year on Amazon's platform, nearly double what non-Prime members spend (an average of $700 a year). Needless to say, the Prime membership base is extremely valuable for Amazon, but what would the impact be if the company boosts the annual membership fee from its current $99 to $150? The short answer: not good.

As it stands right now, 14.90 percent of Amazon Prime customers don't think the $99 annual fee is worth it while another 13.8 percent of Prime members aren't sure, LendEDU found in a survey. Granted, the clear majority of 71.80 percent of members are satisfied with the $99 annual fee, Amazon needs to tread carefully with future price hikes.

If Amazon were to increase its Prime membership by just one dollar to an even $100, 22.10 percent of Prime members wouldn't be renewing their membership, LendEDU found in its survey. An increase to $150 per year would result in 67.30 percent of members saying no thanks to the platform.

At $200 per year, only 15 percent of Prime members believe there is sufficient value in the platform. At the extreme ends of $250 and $300 per year, just 10.2 percent and 8.1 percent of members, respectively, will renew their membership.

"Even a moderate fee increase to $150 would cause the online retail giant to lose 67.30 percent of their consumers," LendEDU wrote. "Heck, 22.10 percent of Prime users said they would discontinue their membership even if the fee was bumped by one dollar to $100."

Bottom line, perhaps Amazon's ultra-loyal Prime members aren't as loyal as believed, as many "will literally leave at the drop of a dime."

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Image Credit: By SounderBruce from Seattle, United States (Amazon Prime Now van in SLU) [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)], via Wikimedia Commons

 

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