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Marketplace

What’s the strategy behind Amazon’s decision to hike monthly Prime membership rates?

Reema Khrais Jan 19, 2018
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Amazon is raising its monthly Prime membership rate, from $10.99 to $12.99. But the annual membership cost is staying the same, at $99. So what’s the logic here? Is Amazon trying to push more people into becoming annual members? Might the price hike prompt some people to drop the service altogether? What are the pros and cons of this strategy?

Click the audio player above to hear the full story.

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