Amazon Is Increasing The Cost Of Prime Membership In The United States To $139 Per Year
Amazon is increasing the cost of Prime membership in the United States to $139 per year
Following the release of its quarterly and full-year earnings results this week on Thursday, Amazon announced that it is raising the price of Prime in the United States. According to the company, the monthly subscription will rise from $12.99 to $14.99 and the yearly membership fee will rise from $119 to $139, representing a 17 percent increase.
It will take effect on February 18 for new Prime members. The price rise will not affect existing members. Existing members will be charged the discounted fee after March 25 on the date of their next renewal, unless they cancel their membership before then. The e-commerce titan claims that the rise is necessary as a result of the ongoing growth of Prime member perks and the subsequent increase in labor and transportation costs.
"Amazon continues to make considerable investments in its Prime subscription service. Over the last few years, we've increased our product assortment to include more items eligible for fast, free, and unlimited Prime shipping, as well as more exclusive promotions and discounts "Jamil Ghani, vice president of Amazon Prime, shared his thoughts. "We will increase the price of a Prime membership in the United States as the number of Prime member features continues to grow, as well as the cost of living and shipping costs in the country. This is the first time that Amazon has raised the price of Prime membership since the beginning of 2018."
With today's announcement, Amazon has raised the price of Prime in the United States for the third time in as many months. Amazon raised the price of Prime for the first time in 2018 as a result of growing shipping costs. Previously, in 2014, the firm raised the price of the product.
During its results call, Amazon stated that Prime members in the United States received more than 6 billion free deliveries last year and that over 200 million members globally will be streaming TV and movies by 2021.
