Amazon share price opens higher as Prime membership cost increases

Amazon Increased Prime Membership Price

This represents a roughly 20% increase from the previous price for a monthly Prime membership, which was $10.99. If you opt to be charged on a monthly basis, however, membership costs are increasing from $10.99 a month to $12.99 a month.

Beginning Feb. 18, existing Amazon Prime Monthly and Prime Student members looking to renew their memberships will pay the increased rate. The company also started offering a subscription option for only Prime Video, without the shipping benefits the program is most famous for.

By jacking up monthly Prime prices, Amazon will at least be extracting more money from these customers-thereby helping the e-retail giant recover some of its shipping costs.

Amazon has also had success with its Prime Now service. The annual Prime membership however stays at $99. Namely, a whopping $57 or so compared to the total yearly bill of a Prime subscriber going month to month. We will keep introducing new ways to make members' lives even better. We have expanded Prime Free Same-Day and Prime Free One-Day delivery to more than 8,000 cities and towns. Still, this will likely be a frustrating move for Prime members who simply can't afford the annual $99 fee. Amazon is keeping their special rate for those on government assistance unchanged at $5.99/month, which is nice of them.




Subspcriptions are a big part of Amazon's business, representing the company's most loyal customers - who are often the most frequent spenders - and roughly $2.5 billion in revenue, according to its third-quarter financial statements.

Amazon doesn't reveal how many Prime members it has, and analyst estimates vary widely.

Amazon has not revealed details on the number of Prime subscribers but a report by Consumer Intelligence Research Partners (CIRP) estimated it had 90 million in the United States as of September.

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