For the first time in a decade, Amazon has decided to raise its minimum shipping price from $25 to $35. This change affects millions of people all over the world as the number of active Amazon users has reached 182 million according to Business Insider. However, I believe this raise in prices can potentially have a positive impact on Amazon because it can be a way to convert more users into the Amazon Prime that the company offers. For an annual fee of $79, Amazon Prime allows for a two-day free shipping for any items bought and an upgrade of $3.99 provides same-day shipping services. This is extremely convenient as customers no longer have to be limited to a minimum free shipping fee. A boost in the price can push more customers into becoming Amazon Prime subscribers and Amazon will be able to work similar to Costco and make profit off the annual membership fees whilst providing cheap service and products. In addition, with the free-shipping and same-day shipping services, other companies will have a tough time competing and catching up with the innovative pace of Amazon.

Works Cited:

Thomas, Owen. “Amazon has Approximately 10 Million Members for its Surprisingly Profitable Prime Club.” Business Insider. March 11^th 2013. November 4^th 2013.

Mcallister, Shep. “Amazon Bumps Free Shipping Threshold to $35,Now You Really Want Prime.” October 22nd 2013. November 4th 2013.

McEntegart, Jane. “U.S,U.K Amazon Prime Customers Get Sunday Deliveries.” Toms Hardware. November 4^th 2013.