Amazon Prime's $99 bargain

Shipping orders go by on a conveyor belt at Amazon's San Bernardino Fulfillment Center October 29, 2013 in San Bernardino, California.

Amazon has decided that just being the biggest seller of stuff online isn't enough -- they've got to make a profit, too.
 
The company announced this morning in what seems like a long-awaited move that its $79 dollar Amazon Prime service will henceforth be its $99 Amazon Prime Service.
 
The phrase here is "loss leader." Even at $99, Prime is a bargain for shoppers. And it works out well for Amazon, too. One estimate has Prime customers spending $1,340 bucks a year on the site.

About the author

Kai Ryssdal is the host and senior editor of Marketplace, public radio’s program on business and the economy.

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