Menu
Clone of Alibaba (BABA) IPO Shares Jump 36%

Alibaba (BABA) IPO Shares Jump 36%

The Sexiest Halloween Costumes of 2014

The Sexiest Halloween Costumes of 2014

Mazda Miata 2016 model revealed

Mazda Miata 2016 model revealed

Miley Cyrus New Butt Gets in Trouble with Law

Miley Cyrus New Butt Gets in Trouble with Law

Larry Ellison Steps Down as CEO of Oracle

Larry Ellison Steps Down as CEO of Oracle

Amazon And The Number Genie: Prime Shipping's Freaky Fate

Jan 30 2014, 11:12pm CST | by , in News | Shopping Tips

Amazon And The Number Genie: Prime Shipping's Freaky Fate
 
 

YouTube Videos Comments

Full Story

Amazon And The Number Genie: Prime Shipping's Freaky Fate

One of the quirkiest prices in America — Amazon.com’s $79-a-year charge for free shipping — is  likely to take another odd twist.  Blame it on the number genie, particularly Amazon founder Jeff Bezos’s delight in prime numbers.

A brief bit of business history is in order.When Amazon in 2004 set up the free-shipping program, known as Prime, Bezos and his team did some rough modeling that could have pointed them toward a $75 or $80 price as optimal. But Bezos picked $79 instead, because 79 is a prime number. (Get it!?)

That $79 price has held firm for nearly a decade. But now Amazon in its latest earnings call signaled that it is likely to raise Prime’s yearly fee by $20 to $40, because of rising shipping costs.

Could Amazon switch to $99 a year? Not likely. After all, 99 isn’t remotely prime: it’s the product of 3, 3 and 11. Settling on a new price of $119 would betray Bezos’s sense of numerology, too. (It may take Americans a moment to realize that 119 isn’t prime, but every Finnish schoolgirl knows that 119 is the product of 7 and 17.)

So if Amazon wants to keep Prime prime — which seems like a near certainty — the only workable options within the new price band are $101, $103, $107, $109, and $113.

We will know how Amazon handles this odd dilemma soon enough. Customers had better enjoy the new price while they can. If Amazon needs to roll out an additional price increase down the road, the next stop on the Prime Number Parade is $127.

Source: Forbes

 

You Might Also Like

Updates


Sponsored Update


Advertisement


More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Apple details out-of-warranty repair costs for the iPhone 6 family
Apple details out-of-warranty repair costs for the iPhone 6 family
The charges are separated into three categories – screen damage, battery and power, and other repairs.
 
 
Goldgenie offers 24ct gold-plated iPhone 6 and iPhone 6 Plus
Goldgenie offers 24ct gold-plated iPhone 6 and iPhone 6 Plus
You can get either an Apple iPhone 6 or an iPhone 6 Plus in one of three versions.
 
 
Kim Kardashian Nude Photos Leaked by Hacker
Kim Kardashian Nude Photos Leaked by Hacker
We have a new celebrity nude photo scandal this weekend. A hacker has published nude photos of Kim Kardashian and others on 4Chan.
 
 
New Apple iPads Set to Continue the Sucess Story
New Apple iPads Set to Continue the Sucess Story
The new iPads for 2014 are expected to be unveiled mid-October based on the latest rumors. Time to take a look where the iPad has come from.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.