Amazon Increases Monthly Prime Membership Rate to $12.99

Chelsea West
January 20, 2018

The price increase takes effect immediately for new members, and on February 19 for existing members.

Amazon raised the monthly rate for its Prime service by 18% on Friday, from $10.99 to $12.99.

Amazon also increased the price of its monthly Prime Student membership, from $5.49 to $6.49. However, subscribers who pay for Prime annually will continue to pay $99 per year. Amazon said it shipped more than 5 billion items through Prime this past year.

Amazon Prime includes free two-day deliveries, discounts on overnight shipping, access to Prime Music, Prime Video, Prime Reading and other perks, like cloud services. Having a more stable, consistent customer base is much more valuable to Amazon than the potential for monthly fluctuation (people jumping aboard for November and December holiday shopping and shipping, perhaps), even if the math would perhaps still work out in their favor.

As of the third quarter of 2017, CIRP estimated that 90 million people in the USA were Amazon Prime members. Namely, a whopping $57 or so compared to the total yearly bill of a Prime subscriber going month to month.

The hike is an 18 percent increase and the last subscription increase came in 2014 when the yearly membership went from $79 to $99.

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After yesterday's news that Amazon Business now has more than 90,000 customers in the United Kingdom, the company has issued a similar press release for its operations in Germany.

Amazon has confirmed the price increase with TechCrunch and laid all of this out on its Prime page.

Amazon ended 2017 with about 60 million Prime subscribers in the U.S. Netflix, meanwhile, is expected to have about 54 million U.S. subscribers when it reports its fourth-quarter earnings on Monday. The online retailer also said that the number of items that are eligible for free Prime shipping has risen from 20 million to surpass 100 million items.

The fee kicks in today for new members.

The investigation, which incorporates information from 500 Amazon clients, gauges Amazon Prime supporters spend twofold the $700 every year the normal non-part spends on the site.

Other reports by TheSundaySentinel

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