Amazon Fees Increase Even As Profits Double
Have you heard the news today that your Amazon Prime membership will cost you an extra $20 this year?
As a mom to a 1 and a half year old, I use online shopping, including Amazon, a lot more than I did before having him. It's more convenient for me a lot of times to just order something online instead of hauling my little guy in and out of the car and into stores to search for an item I need. I shop in person as much as I can because I enjoy it but I can't deny that I shop online a lot. I don't mind paying for a membership to Amazon Prime if I see real value in it. What I do mind, however, is when CEOs and other execs are worth millions and billions of dollars, don't pay their employees a fair salary, and then tell the consumer they need to pay more in order to further line their own pockets.
Have you heard the other news coming out of Amazon? Their profits for the first 3 months of 2018 more than doubled over the same period in 2017. They earned over $1billion in the first 3 months of 2018. Oh, and Mr. Bezos, the CEO of Amazon, just recently topped the list for the richest person in the world.
I fail to believe the words of Amazons CFO when he stated the price increase is due to rising costs. When profits more than double in a pretty slow economic quarter, I'm gonna stop and say "try again Amazon".
Let's look at the facts...
Amazon Prime has around 100 millions members. At a $20 increase, that would equal 2 billion extra dollars if everyone renewed and they made no additional membership sales.
Jeff Bezos has a net worth of over 130 billion dollars.
Amazon employees have a median salary of $28,446
Quarter 1 profits are over $1 billion, more than double from 1 year ago
Membership has drastically increased over the last few years
Somehow we are being told they HAVE to increase fees due to increased costs despite a large increase in profits
Answer me this Mr. Bezos...
WHERE is this increased fee really going to? Is it going to line his pocket and that of the other Amazon execs? Is it going to the employees to raise the median salary? Is it going to purchase more brick and mortar stores like Whole Foods so Amazon can effectively claim hold on every single market? You wanna tell me, Mr. Bezos, that Amazon had to raise my fees because of rising costs, I suggest you DON'T do it at the same time you're reaping the benefits of a stock increase because you just said your profits more than doubled.
You might have wanted to rethink the announcements being so close together because right now, you're up pretty high on that list of public enemies.
For those paying close attention, Amazon isn't always the lowest price for items and many stores are offering free shipping to try to attract your business. Maybe it's time to evaluate if the membership is REALLY worth it for you. I think I'll be weighing its benefits for my home.