Amazon Prime, a paid subscription service from Amazon which operates in many countries and gives subscribers access to additional services otherwise unavailable or available at a premium to other Amazon customers is $14.99 per month from $12.99 per month. The new fee structure was instated four years ago. The price hike is meant to address higher costs Amazon is facing across the board, from shipping to labor to construction, according to analysts.
The price change will go into effect for new members on February 18th and for current members after March 25th. The price for annual membership to Prime is also going up to $139 per year, up from the $119 annual fee.
According to the Verge, Amazon cited “the continued expansion of Prime member benefits as well as the rise in wages and transportation costs” as reason for increasing the service’s price. Prime’s price isn’t changing in other countries for now. On a call with investors, Amazon said it looks at pricing in other countries each year, but that it had no further announcements today.
Higher costs across led Amazon’s operating income to dip substantially during the final quarter of 2021, falling to $3.5 billion from $6.9 billion a year earlier, the company announced in an earnings release this afternoon. It’s the second quarter in a row that Amazon’s profit has dipped.
Amazon last raised the price of Prime in April 2018, citing higher costs around shipping and other perks. Prior to that, the price was raised to $99 per year in 2014, after having remained at $79 annually for nearly a decade since its launch in 2005.
Prime passed 200 million subscribers last year. Amazon has continued to expand the service’s offering, growing from quick shipping speeds to also include access to Prime Video, music streaming, Twitch perks, and more.
