The Cost of Amazon Prime Is Going Up Again

The Cost of Amazon Prime Is Going Up Again
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Hold on to your wallets – Amazon is raising the price of its wildly popular Prime service yet again.

The price hike from $99 to $119 for annual memberships was announced during Amazon's earnings call on Thursday. The last time Amazon raised Prime's price tag was in 2014.

What you need to know

The Amazon Prime price increase goes into effect on May 11, 2018.

Amazon Membership Current Price Starting 5/11/18
Annual $99/year $119/year
Student - Annual $49/year $59/year
Monthly $12.49/month (no change)
Student - Monthly $6.49/month (no change)

 

With the price changes, the $119 regular annual memberships works out to an amortized cost of $9.92/month, compared to the monthly $12.49 rate (which adds up to $149.88 annually.)

Important note for a few lucky Prime members: If your current membership is set to automatically renew between May 11, 2018 and June 16, 2018, you'll renew at the current $99 rate, or $49 for student subscribers. To see if you're lucky enough to lock in your current rate for an extra year, check your Next Payment date under Manage Your Prime Membership.

Who is affected by the price change?

For now, the price changes only appear to affect annual subscriptions for Amazon Prime and Student Prime. Monthly memberships are not affected by yesterday's announcement. The official price change page does not mention any other membership types, so we're assuming they're safe for now.

Why is Amazon raising the cost Prime again?

Brian Olsavsky, Chief Financial Officer of Amazon, noted to media Thursday that the price hike reflects the value of Prime's continually expanding list of membership benefits.

About all those Amazon Prime perks...

Amazon Prime has been much more than its initial offering of free 2-day shipping for quite a long time now. Just this year, Amazon leaked plans to offer a Prime member discount at Whole Foods, which it recently acquired. Their new In-Car Delivery service was announced just this week. Amazon's list of subscriber benefits is long and constantly growing as Amazon continues to expand into every corner of daily life.

Will you keep Amazon Prime after the price hike? Tell us in the comments!

Cover photo: Andy Melton / Flickr