It was just a week ago when CEO Jeff Bezos said that Amazon now has over 100 million paid Prime members worldwide. Prime is an Amazon service that combines free two-day and one-day shipping along with a Prime Video subscription as well as other perks like Whole Foods discounts and DVD exclusives.

"The value of Prime to customers has never been greater," said Olsavsky. But, he says, it's also expensive. "The cost is also high, as we pointed out especially with shipping options and digital benefits, we continue to see rises in costs."