In an effort to drive more customers to full-year memberships, Amazon is raising its monthly Prime membership fees by $2, while leaving the yearly subscription fee at $99.
This is a savvy move as Amazon is betting the higher monthly fee will make cost-conscious shoppers more likely to opt for the cheaper annual rate, thus locking them in longer and increasing sales and stickiness.
Amazon is also reportedly raising its seller fees for several categories, according to Business Insider. For instance, it is reportedly increasing the fee in clothing and accessories from 15% to 17% of the sale price, while also raising the fee in handbags and sunglasses from 15% to 18% on items priced above $75. Products in those categories under $75 will still be charged at the 15% rate, according to Business Insider.
In the jewelry category, Amazon is now reportedly charging a 20% fee on the first $250 of a sale, and 5% for the remainder of the cost on items above that threshold.
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