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. 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.
Know before you go.
News and deals straight to your inbox every day.
NEW INCREASED OFFER: 60,000 points! With great travel benefits, 2x points on travel & dining and a 60,000 point sign up bonus worth up to $1,200 in value, the Chase Sapphire Preferred is a great card for those looking to get into the points and miles game. Here are the top 5 reasons it should be in your wallet, or read our definitive review for more details.
- 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®
- Chase Sapphire Preferred named "Best Credit Card for Flexible Travel Redemption" - Kiplinger's Personal Finance, June 2018
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- No foreign transaction fees
- 1:1 point transfer to leading airline and hotel loyalty programs
- 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
- No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards