Amazon customers should be paying $785 for Prime membership — here's why (AMZN)

15:53 - 18 May 2018

Amazon Prime membership is worth $785 annually, versus the $119 that Amazon is now charging customers, according to JPMorgan analysts. The value of the membership has jumped 12% since last year, with the addition of new perks like two-hour delivery of groceries from Whole Foods through Prime Now.

The value of the membership has increased 12% since last year, with the addition of new perks like free two-hour delivery of groceries from
Prime is the "best deal in shopping," the report said.a

Amazon Prime customers are paying a tiny fraction of what the service is actually worth, according to a new analysis by JPMorgan.

Amazon recently raised the annual fee for its Prime membership to $119, up from $99.

JPMorgan analysts analyzed all the perks that Prime membership now offers, including free two-day shipping on millions of items and same-day delivery of Whole Foods groceries, to find out whether Amazon is charging a fair price.

According to the analysis, Prime membership is actually worth far more — an estimated $785 annually — than what Amazon is charging. The value of the membership has increased 12% since last year, analysts found.