Amazon Is Increasing the Cost of a Prime Membership by 20%
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.
Featured image by David Ryder / Getty Images.
WELCOME OFFER: 60,000 Points
TPG'S BONUS VALUATION*: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.