Amazon to raise fees as revenue disappoints

Written by New York Times | San Francisco | Updated: Feb 2 2014, 01:27am hrs
Amazon investors might have finally heard the news they have been waiting for: The retailer is raising shipping fees.

This is the first time weve ever seen Amazon flex its muscles in terms of pricing, said Gene Munster, an analyst with Piper Jaffray. Its hugely significant.

The news came in a conference call when the Seattle-based retailer discussed its fourth-quarter earnings.

The announcement helped deflect disappointment that Amazons torrid growth might be slowing. Revenue was $25.59 billion, up 20% from the quarter in 2012. Earnings per share were 51 cents, up from 21 cents.

Thomas Szkutak, Amazons chief financial officer, said the price increase for Prime, if it happens, would be $20 to $40.

Shipping costs have gone up a lot, fuel costs have gone up a lot, he said.