Inc. has raised the cost of its monthly Prime membership fee to $12.99 from $10.99, a almost 20% rise. The company said items shipped with free one-day, same-day delivery or Ultra-Fast deliveries with Prime Now more than doubled this holiday season.
The e-commerce giant said it has also raised the rate of its cheaper Prime plan for students from $5.49 a month to $6.49 a month. Amazon Prime Student members will continue to pay the $49 annual fee. The new price, plus applicable taxes, will apply to your renewals starting March 18, 2018.
Amazon's monthly plan for Prime was introduced less than two years ago.
The plan previously cost $10.99 a month, but it will now cost $12.99 a month.
Amazon has confirmed the price increase and laid out all the details on their Prime page. So customers who opt for the monthly subscription option will be paying $12.99 per month, which means if you pay for a year you're forking over an additional $24, or $156 in total.
Amazon says it has no preference on the annual versus monthly option.
Amazon Prime's standalone video membership will continue at its $8.99 monthly price. If you're on the monthly plan and wind up sticking with Prime for a year, you'll pay nearly $156. This move is essentially showing us that Amazon is pushing customers to opt in for the annual option. In the US alone, more than 6,000 trucks and 32 Amazon Air planes traversed the roads and skies, packed with Amazon packages. Though Amazon Prime does come with a free-shipping program, we're most interested in how this impacts Prime Video, if at all, and how it all compares to rival Netflix.
The new fee structures go into effect immediately for new, monthly Prime members. Prime customers also spend more.