Why Amazon Prime may not be such a good thing for the company anymore (AMZN)
|01/31/2019||Posted by BusinessMediaguide.Com under General World News||
- Amazon’s Prime service may be a good deal for customers, but it’s becoming a worse one for the company.
- The key component of the subscription offering is its free-shipping deals.
- But the cost of those deals also now eats up half of the $119 annual subscription price the company charges customers, estimates Dan Morgan, a portfolio manager who closely follows the company and whose fund owns Amazon shares.
- Amazon’s fulfilment costs are slated to keep rising, thanks to price hikes by the major shippers.
Amazon’s Prime service may be starting to become too much of a good thing for the tech giant.
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