Amazon is reportedly considering raising the price of its Amazon Prime membership by $20 to $40 per year. The service currently offers free two-day shipping, video streaming, and Kindle book rentals. But would current members continue to use Amazon Prime with an increased price tag? And would an increase deter any new users?
In Ask Your Target Market’s latest survey, 21% of respondents said they currently use Amazon Prime. 16% said they have used Amazon Prime in the past. And the remaining 64% said they’ve never used Amazon Prime.87% of current Amazon Prime members said they take advantage of the free two-day shipping. 61% said they use Amazon Prime’s video streaming service. And 24% use the Kindle book rentals.
Currently, Amazon Prime costs members $79 per year. But what would happen if the price increased by at least $20? Just 18% of current Amazon Prime members said they would definitely continue to use the service if Amazon raised the price to over $100 per year. 22% said they would probably continue to use Amazon Prime. 40% said they would probably not use Amazon Prime anymore if the price went up over $100 per year. And 20% said they would definitely not use Amazon Prime anymore.
Of those who do not currently use Amazon Prime, 37% said that they do shop on Amazon often. 40% said they sometimes shop on Amazon. 10% said they rarely shop on Amazon. And just 13% never shop on Amazon.So there’s a fair amount of customers who could potentially benefit from Amazon Prime. But could a high price tag deter them? Just 2% of those who aren’t already Amazon Prime members said they would definitely be interested in the services offered for over $100 per year. 14% said they would probably be interested in Amazon Prime at an increased price. 38% said they would probably not be interested. And 46% said they would definitely not join Amazon Prime for $100 or more per year.You can view the complete survey results in the widget below and be sure to click “Open Full Report” to take advantage of all the chart and filter options.Photo Credit: My Kindle I from FlickrWhat do you want to know? If you need some consumer insights on a particular topic, let us know in the comments below and we’ll consider it for an upcoming survey post.
Results were collected on February 4 via AYTM’s online survey panel.