Amazon is increasing the price of Prime in the United States, the company announced on Thursday as part of its quarterly and full-year earnings release. The monthly fee is going from $12.99 to $14.99 and the annual membership is increasing from $119 to $139.
The price change will go into effect on February 18 for new Prime members. For existing members, the price will apply after March 25, on the date of their next renewal. The e-commerce giant says the reason for the increase is due to the continued expansion of Prime member benefits and the rise in wages and transportation costs.
“Amazon continues to invest heavily in Prime. In the last few years, we’ve added more product selection available with fast, free, unlimited Prime shipping; more exclusive deals and discounts,” said Jamil Ghani, the vice president of Amazon Prime, in a statement. “With the continued expansion of Prime member benefits as well as the rise in wages and transportation costs, we will increase the price of a Prime membership in the U.S. This is the first time Amazon has raised the price of Prime since 2018.”
Today’s change marks the third time that Amazon has raised the price of Prime. The last time Amazon increased the price of Prime was in 2018 due to higher costs around shipping. Before that, the company raised the price in 2014.
