Rafi Mohammed

Amazon Should Unbundle Prime

Posted on February 13th, 2014 (0 Comments)

Amazon recently announced that it plans to raise the price of its Prime program by $20 - $40 (25% - 50%).  Prime has proven to be a great marketing vehicle with its members representing  roughly 36% of its revenues.  The concern is such a steep price hike will make Prime less attractive, hence adversely affecting Amazon’s growth. UBS recently downgraded its stock from a buy to hold.

It’s disappointing that such a cutting edge company as Amazon still thinks of pricing as a simply two way “up or down” lever. So old school and unimaginative! Please check out my latest piece for the Harvard Business Review which provides a straightforward pricing for profit and growth solution for Amazon Prime.

As always, thank you for reading!

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