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Amazon Prime is the online paid subscription service offered by Amazon.com web-commerce site (Source: Getty Royalty-Free)
I've always thought Amazon went out of its way to take care of its Prime members. But when it is announced that it is giving everyone free 2-day shipping for the holidays, I can not help but feel that I, along with all members, should not have to pay the same benefit. I called Amazon to talk about this and I was expecting. If you are a Prime member, I'd love to know what you think. Here's how the conversation went.
Ken Kam: Hello, I have a question about my Prime membership.
Amazon Representative: Thank you for being a Prime member. How can I help you?
Kam: I see that Amazon is giving away 2-day shipping to everyone for the holiday season. Since this is the main benefit of premium membership that I actually use, I do not want to keep paying for this benefit when everyone else is getting it for free.
Can I put my premium membership on hold during the holidays so I'm not paying for the two months when everyone gets free 2-day shipping?
Amazon: That's a good question. Let me put you on a brief hold while I research your options?
later
Here's what I found out. You paid for an annual membership in April. We can cancel your membership. Then you can cancel the monthly plan and start again after the holidays.
Kam: Will I get a refund for the unused 5 months of my annual membership? I paid $ 119 for 12 months, so I figured 5 months worth is about $ 50.
Amazon: We do not give you a new price for you.
KamIf you're going to keep the $ 50, how does your solution work?
Amazon: That is what I am authorized to do for you.
Kam: OK thank you.
My Take: In May of 2016, when Amazon was at $ 700, one of my managers, Rex Jacobsen, bought it because he thought the market was underestimating the company. A little more than two years later Amazon is $ 1,600.
Amazon Prime is one of the Rex initiatives expected to drive Amazon's value up. Boy was he right. In April, Jeff Bezos said that Amazon Prime had over 100 million subscribers worldwide. With an annual subscription now running $ 119, $ 10 billion has a year of high margin revenue.
As successful as Amazon has been, investors have to be alert to changes that signal weakness. The change in how Amazon takes care of Prime members is a good example.
When I first became a Prime member, free 2-day shipping. Amazon has gone from $ 79 to $ 119 while adding new benefits. While I have not used the new benefits, it has been worth it.
Making Prime members pay for the benefit of free 2-day shipping when everyone else gets it for free.
If Amazon is going to offer 2-day free to everyone, then give it free to Prime members as well. To make things right, or to give a premium.
We are not talking about a lot of money here. At $ 119 a year, two months of premium membership costs about $ 20. Still, if I pay Amazon $ 20 I'd like to get something I value in return.
Click here to send me a message if you are with me on this.
If you would like to know when I write about Amazon or other stocks click here.
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Amazon Prime is the online paid subscription service offered by Amazon.com web-commerce site (Source: Getty Royalty-Free)
I've always thought Amazon went out of its way to take care of its Prime members. But when it is announced that it is giving everyone free 2-day shipping for the holidays, I can not help but feel that I, along with all members, should not have to pay the same benefit. I called Amazon to talk about this and I was expecting. If you are a Prime member, I'd love to know what you think. Here's how the conversation went.
Ken Kam: Hello, I have a question about my Prime membership.
Amazon Representative: Thank you for being a Prime member. How can I help you?
Kam: I see that Amazon is giving away 2-day shipping to everyone for the holiday season. Since this is the main benefit of premium membership that I actually use, I do not want to keep paying for this benefit when everyone else is getting it for free.
Can I put my premium membership on hold during the holidays so I'm not paying for the two months when everyone gets free 2-day shipping?
Amazon: That's a good question. Let me put you on a brief hold while I research your options?
later
Here's what I found out. You paid for an annual membership in April. We can cancel your membership. Then you can cancel the monthly plan and start again after the holidays.
Kam: Will I get a refund for the unused 5 months of my annual membership? I paid $ 119 for 12 months, so I figured 5 months worth is about $ 50.
Amazon: We do not give you a new price for you.
KamIf you're going to keep the $ 50, how does your solution work?
Amazon: That is what I am authorized to do for you.
Kam: OK thank you.
My Take: In May of 2016, when Amazon was at $ 700, one of my managers, Rex Jacobsen, bought it because he thought the market was underestimating the company. A little more than two years later Amazon is $ 1,600.
Amazon Prime is one of the Rex initiatives expected to drive Amazon's value up. Boy was he right. In April, Jeff Bezos said that Amazon Prime had over 100 million subscribers worldwide. With an annual subscription now running $ 119, $ 10 billion has a year of high margin revenue.
As successful as Amazon has been, investors have to be alert to changes that signal weakness. The change in how Amazon takes care of Prime members is a good example.
When I first became a Prime member, free 2-day shipping. Amazon has gone from $ 79 to $ 119 while adding new benefits. While I have not used the new benefits, it has been worth it.
Making Prime members pay for the benefit of free 2-day shipping when everyone else gets it for free.
If Amazon is going to offer 2-day free to everyone, then give it free to Prime members as well. To make things right, or to give a premium.
We are not talking about a lot of money here. At $ 119 a year, two months of premium membership costs about $ 20. Still, if I pay Amazon $ 20 I'd like to get something I value in return.
Click here to send me a message if you are with me on this.
If you would like to know when I write about Amazon or other stocks click here.
