Follow us:

Jon Talton

Analysis and commentary on economic news, trends and issues, with an emphasis on Seattle and the Northwest.

March 14, 2014 at 10:42 AM

Vote: Amazon’s Prime hike

As expected, Amazon.com raised the fee on its Prime service by $20 to $99 a year. Prime, with some 20 million members, offers two-day shipping for millions of items at no extra cost, as well as free access to its streaming video service.

The move brings risks, chiefly that many members will go away. On the other hand, as the Seattle Times’ Jay Greene reported, when Amazon announced the move Thursday its shares rose while the broader market declined. They climbed again this morning.

There’s controversy, such as lawsuits alleging that Amazon encourages sellers to inflate prices. And a big question about how far the company can push customer loyalty. But many analysts and investors say that Amazon is finally getting serious about making money and improving its margins.

What do you think?

This Week’s Links:

Boom in oil is a boom for U.S. shipbuilding | NPR

How Bank of America is killing the paper check | Wonkblog

Troubled waters: Nuclear radiation found in B.C. may post health concerns | Vancouver Sun

No, Washington does not have a natural gas weapon against Moscow | Oil Price

Silicon Valley’s youth problem | NY Times Magazine

Why are so many traders killing themselves? | The Big Picture

The free market’s weak hand | Baseline Scenario

Follow my Twitter feed @jontalton for the latest business and economic news and analysis

Today’s Econ Haiku:

In Olympia

Lawmakers are like Greek gods

Lazy, capricious

Comments | More in Amazon.com

COMMENTS

No personal attacks or insults, no hate speech, no profanity. Please keep the conversation civil and help us moderate this thread by reporting any abuse. See our Commenting FAQ.



The opinions expressed in reader comments are those of the author only, and do not reflect the opinions of The Seattle Times.


Advertising
The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►