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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.

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 David Ryder / Getty Images.

The Platinum Card® from American Express

The American Express Platinum card has some of the best perks out there: cardholders enjoy the best domestic lounge access (Delta SkyClubs, Centurion Lounges, and Priority Pass), a $200 annual airline fee credit as well as up to $200 in Uber credits, and mid-tier elite status at SPG, Marriott, and Hilton. Combined with the 60,000 point welcome offer -- worth $1,140 based on TPG's valuations -- this card is a no-brainer for frequent travelers. Here are 5 reasons you should consider this card, as well as how you can figure out if the $550 annual fee makes sense for you.

Apply Now
More Things to Know
  • Earn 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.
  • Enjoy Uber VIP status and free rides in the U.S. up to $15 each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings.
  • 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel.
  • 5X Membership Rewards points on prepaid hotels booked on amextravel.com.
  • Enjoy access to the Global Lounge Collection, the only credit card airport lounge access program that includes proprietary lounge locations around the world.
  • Receive complimentary benefits with an average total value of $550 with Fine Hotels & Resorts. Learn More.
  • $200 Airline Fee Credit, up to $200 per calendar year in baggage fees and more at one qualifying airline.
  • Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue on your Platinum Card®. Enrollment required.
  • $550 annual fee.
  • Terms Apply.
  • See Rates & Fees
Intro APR on Purchases
N/A
Regular APR
N/A
Annual Fee
$550
Balance Transfer Fee
See Terms
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

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