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Amazon Set To Raise Annual Prime Membership Fee To $139; Last Increase Was In 2018

by Crystal Gross
February 3, 2022
Reading Time: 2 mins read
0
Amazon Halts DEI Programs, Joining a Growing List of Corporations Slashing Diversity Measures

Amazon Halts DEI Programs, Joining a Growing List of Corporations Slashing Diversity Measures

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The cost of living just keeps going up. This time it’s with Amazon. The company has decided to increase its annual membership fee to $139.

The last time the company had a price increase was in 2018. At the time, it went from $99 to $119, and four years before that, it raised the fee to $99 from $79, CNBC reported.

And that’s not the only thing that will go up. Amazon also raised its monthly Prime membership fee from $12.99 to $14.99. New members will begin to see the increased prices starting on February 18, and current members will be charged the higher rate after March 25.

Despite the company’s stock rising more than 14% on Thursday during extended trading, it is not enough to keep the exact charges to customers.

Amazon Prime offered members access to free two-day shipping and exclusive movies and TV shows for more than a decade. Last April, the service had more than 200 million subscribers across the globe. 

The membership program continues to be one of the biggest growth levers for Amazon’s core retail business because Prime members spend a significant amount more on Amazon than those who aren’t members, and they also shop more.

Amazon has decided to raise its prices due to the challenges of continued supply chain disruptions and labor constraints. However, the company also raised wages and offered generous signing bonuses with hopes of attracting workers in what they call a tight labor market.

Apparently, there has been a struggle to keep Prime members hooked on the services that have become more expensive to offer. The company spends billions to provide more compelling video and music content for customers on its streaming service.

Do you plan on keeping your memberships?

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