Amazon raises the cost of Prime about 17% to $139 each year
Key takeaways:
- Amazon is increasing the cost of its yearly Prime membership to $139 from $119, the firm disclosed on Thursday.
- Amazon hadn't increased the cost of its Prime membership program since 2018, when it rose from $99 to $119, the current price.
Prime membership's price rose by Amazon:
Amazon is increasing the cost of its annual Prime membership to $139 from $119, the firm declared on Thursday as a portion of its fourth-quarter profits results.
Amazon previously climbed the cost of Prime in 2018, when it rose to $119 from $99. Four years ago, it increased the subscription cost to $99 from $79.
Amazon's annual growth amounts to almost a 17% incline in cost. Amazon also increased the monthly price of a Prime membership from $12.99 to $14.99, the firm stated. New members will see the inflated costs on February 18, and existing members will be billed at the higher cost after March 25.
Amazon stock increased almost 14% at one end on Thursday in extended trading.
Founded in 2005, Amazon Prime offers members access to free two-day shipping, as well as the key to premier movies and TV shows, among other bonuses. Previous April, the benefit had nearly 200 million subscribers worldwide.
The membership program stays one of the most significant development levers for Amazon's core retail business. Prime members pay much more on Amazon than non-Prime clients, and they even shop more often.
Amazon is increasing the cost of Prime as it guides the dual challenges of persisted supply chain disorders and labor restrictions. The firm grew salaries and showed great signing perks to lure employees in a tight labor market. To dodge delivery upsets, it delivered packages over longer and pricier distances to get them to facilities with enough team to bear them.
Keeping Prime members joined on the service has also become more costly for Amazon.