Amazon Prime subscription service is raising to $139 per year. Though this might upset some members, Amazon promises the "continued expansion of Prime member benefits." They reveal benefits like free same-day delivery, Amazon Music, Venmo services, and a physical "Amazon Style" retail store.
The new Amazon Prime price is its first increase since 2018. Back then, the annual subscription fee rose from $99 to $119. It seems Amazon is keeping its pattern of a $20 increase per raise.
Why Did Amazon Increase Prime Membership Costs?
Amazon cited "increased costs and inflation" as the reason for their price increase. Company CFO Brian Olsavsky emphasized that it is necessary to offset the company's labor and logistics costs.
On their recent company earnings call, Olsavsky said "the continued expansion of Prime member benefits and the increased use we have seen, along with increased costs and inflation," per Rolling Stone.
Amazon CEO Andy Jassy also shared that the company is facing "short-term challenges" that should continue in the coming months. Jassy said Amazon "saw higher costs driven by labor supply shortages and inflationary pressures and these issues persisted into the first quarter due to Omicron."
Amazon Prime Price Increase
The Verge noted that Amazon Prime cost has come a long way since it first launched in 2005. At first, Amazon Prime only cost $79 per year, but by 2014 the price rose to $99 due to the introduction of music streaming services. Then it rose to $119 in 2018 because of shipping and other perks. The changes in cost bring a grand total of a $60 increase since launch.
When Will Amazon Price Increase Start?
The new pricing will officially start on February 18 for new subscribers, with an annual subscription costing $139 per year and $14.99 per month. Current members will see the price increase after their subscription ends, and the new price would be applied to renewals that take place after March 25.
Rolling Stone reported that some savvy subscribers are exploiting a workaround for the price increase. They do this by signing up to Amazon Prime right now, so they will be locked in a $119 annual fee. This option means subscribers will pay the new price on February 2023.
Amazon Prime Increase Bonuses
Despite the price increase, Olsavsky emphasized that Amazon Prime membership will continue to offer the best services for their members. He boasts the company's free two-day shipping, free same-day delivery, and its multitude of streaming options.
According to Rolling Stone, Amazon Prime 2022 benefits might include new services like payment options through Venmo, a physical "Amazon Style" retail store, and the expansion of same-day delivery where products can be sent out within five hours.
The Amazon Prime price increase is mainly implemented in the US sector, so other countries have yet to see this changes. Affected Amazon members and prime users are recommended to watch out for more updates that can drop anytime in the following months.
