Amazon cancels monthly Prime option after two weeks

first_imgAmazon has decided to put an end to its new monthly billing option for Amazon Prime after testing it out for just two weeks. It is unclear why the retail giant decided to pull the new option, or if it was originally scheduled to only run as a two-week trial period to begin with.When Amazon Prime was first introduced, charging on an annual basis made sense. After all, if it was available for a monthly charge, many consumers would probably have signed up for the holiday shopping season and then swiftly cancelled their memberships. The whole point of Amazon Prime was to encourage users to shop at Amazon year-round, as if it was a local store. The story has changed though, with Prime drawing much more attention these days because of its video streaming and free Kindle book access.Such was presumably the basis for offering the same benefits at a monthly fee of $7.99. This would make it appear more like a direct competitor to Netflix or Hulu Plus. However, Amazon cut that option saying that it was a test, and that customers may no longer sign up for the plan. Those who did manage to grab a monthly membership will get to retain it.Of course, anyone who has access to a calculator can figure out that the $79 annual rate of an Amazon Prime membership is actually only $6.58 a month, making it a good deal by all accounts. Paying annually still makes a lot of sense.It has to make you wonder what the response was like, and what the account activity is like for those newly acquired monthly subscribers. Did they just sign up because they needed to ship a package that would have cost $10 or $20 to overnight, and then cancel their Prime account? Or did they actually start consuming a lot of Amazon digital content and find it to be lacking?The presumption would be that the former was the case. A $7.99 monthly membership is basically the same as a $7.99 promotion for two-day shipping, and that was not Amazon’s intention. Then again, nobody outside of Amazon’s offices knows the real scoop here. The bottom line is Amazon Prime requires an annual commitment once again.via All Things Dlast_img

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