Amazon is raising its monthly Prime membership rate, from $10.99 to $12.99. On a yearly premise, month to month enrollments will now cost buyers $156 a year. But as with the standard Prime membership, the yearly fee will remain the same ($49 for students). In a statement, Amazon points to its expansion of free two-day shipping items and free delivery options, as well as its growing streaming service.
So if you are subscribed on a month-to-month basis and have been doing so for a year now, perhaps now might be a good time to bite the bullet and just purchase an annual plan outright and save yourself around $60. Prime members spend considerably more on Amazon than non-Prime members. The organization will likewise raise the month to month charge for its Prime program for understudies, which it began the previous fall, from $5.49 to $6.
Amazon has raised the price of one of its most popular services.
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Amazon has also had success with its Prime Now service.
Amazon Prime started in 2005, and by 2016, Prime sales growth was still running above 40 percent. The report says Prime customers tend to be loyal, with 95 percent of current subscribers saying they'll either "definitely" or "probably" renew their membership.
Only Prime has the added dimension of offering subscribers discounts and other benefits from its shopping platform, which help the company lure more buyers.
Amazon's price increases seem to be going against the grain of its initiative past year to offer a cheaper membership to shoppers on government assistance.