Is Amazon a Buy on Prime Increase?

Amazon.com (NASDAQ: AMZN  ) has been hinting at a price increase for its Prime service for some time now, and earlier this week, the company finally made it official, raising the price of membership from $79 to $99. The company has been putting off a price increase for some time now, despite the rising costs of fuel and delivery.

In this video, Motley Fool consumer goods analyst Mike Finarelli says that as a Prime subscriber himself, he sees the value proposition of the company as one that still leans heavily toward the consumer, as Amazon continues to add sellers that allow it to offer a massive range of goods and services, and doesn't see a $20 increase as one that breaks the bank for most members. As an investor, he sees this move as potentially bringing in up to several hundred million in additional revenue, which could fall toward the bottom line considering the low-cost nature of Amazon's operations.

So, is Amazon destined to bury traditional retail?
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