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Amazon Is Increasing the Cost of a Prime Membership by 20%

April 27, 2018
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2 min read
Amazon Buys Whole Foods For Over 13 Billion
Amazon Is Increasing the Cost of a Prime Membership by 20%
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Amazon is set to increase the price of your Prime membership next month. On Thursday, Amazon announced that it'll increase the price of Prime subscriptions by just more than 20%, beginning May 11, 2018 — from $99 per year to $119.

The internet giant disclosed that more than 100 million people are Prime members. During a conference call following its first-quarter earnings report on Thursday, the company's Chief Financial Officer Brian Olsavsky said that it was forced with increasing the cost of a membership, meaning an extra $2 billion for Amazon.

"The value of Prime to customers has never been greater," Olsavsky said. "And the cost is also high, as we pointed out especially with shipping options and digital benefits, we continue to see rises in costs. So, effective May 11, we're going to increase the price of our US annual plan from $99 to $119 for new members."

Current Prime members who renew after June 16 will have to pay the new, higher rate. If you're a current Prime member who renews your membership before that date, you'll be able to do so at the $99 rate.

This move from Amazon is the first time the retailer has raised the price of a Prime membership since 2014, when the annual membership increased from $79 to $99. Similar to this increase, the last was also a $20 raise.

Amazon cites new features as the reason for the increase. Prime membership comes with a number of benefits, including free two-day shipping on many items, as well as access to Amazon's streaming service. With the growing number of companies that Amazon is buying, it could also be adding new Prime benefits going forward. For example, when it makes Whole Foods perks exclusive to Prime members.

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Amazon also offers up to 5% back on Whole Foods purchases with its Amazon Prime Rewards Visa Card from Chase. The card also offers up to 5% back on Amazon.com purchases.

Featured image by Getty Images

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

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  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.