Amazon Prime members have been paying $99USD for their yearly membership. This membership gives them access to faster shipping options, Prime Video, Twitch, and other goods and services. Now, Amazon Prime members will be paying 20% more for those same services. Amazon announced on Thursday that Prime membership fees will go up to $119USD from $99USD. Amazon says it has 100 million users in the Amazon Prime program. The company has also reported a large increase in profits and sales which has pushed its stock in a positive direction.
“The value of Prime to customers has never been greater. And the cost is also high, as we pointed out especially with shipping options and digital benefits, we continue to see rises in costs,” Olsavsky said in response to the first question from an analyst, which had nothing to do with Prime. “So effective May 11, we’re going to increase the price of our U.S. annual plan from $99 to $119 for new members.”
Amazon was keen on letting us know that they have not increased Prime fees since March 2014, so in their eyes, it’s time for a bump. There was no indication that an increase for Amazon Prime members outside the United States was coming. Of course, that can’t be ruled out but for now, it’s just the U.S. that will see the 20% increase.
“We always evaluate the price of Prime in all the countries we’re in, and we’re looking for creative ways to reach the customer,” Olsavsky said later in the conference call.
The price hike is likely going to create conversation among Amazon Prime users. We suggest taking advantage of as much of what your Amazon Prime membership offers to get the most for your money. Most members only take advantage of the shipping conveniences Amazon offers but there is more there to be had.
- Free two-day shipping
- Free same-day delivery
- Prime Now
- Prime Video
- Amazon Channels
- Prime Music
- Twitch Prime
- Amazon Fresh
- Prime Pantry
You can find out what exactly your Amazon Prime membership includes on Amazon’s fact page.Source: MarketWatch