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Is Amazon about to change its pricing model? | New Republic

Is Amazon about to change its pricing model?Ever since Amazon opened its first physical bookstore a year ago, people have been speculating what the point was. Amazon, after all, has strived above all else to keep infrastructure costs down. Spending more on infrastructure spooks its investors, who are obsessed with growth (something Amazon does effortlessly) and profit (not so much).

One theory was that the physical stores would become shipping hubs for Amazon’s expanding mail empire. Another was that, despite Amazon’s small collection of titles, it was planning on finally digging Barnes & Noble’s grave. The stores also could be giant experimental labs to test various schemes, or showrooms for Amazon products, like the Echo and the Kindle, that encourage people to shop at Amazon.

All of those might still be true, but the evidence suggests that Amazon wants to use the bookstores to lock in more customers to Amazon Prime. Geekwire reports that Amazon bookstores are changing their pricing models. Before, prices in the store were the exact same as those online. Now, only Prime members get the online price—other customers pay full price.

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Is Amazon about to change its pricing model? | New Republic.

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