Amazon Prime prices are headed higher as the tech giant battles labor inflation, among other factors.
The company said Thursday during its Q4 earnings release that it would lift the annual Prime membership price to $139 from $119. The monthly fee will go to $14.99 from $12.99.
Amazon Prime vice president Jamil Ghani said the increase in prices reflects the company’s heavy investment in new member benefits. “In the last few years, we’ve added more product selection available with fast, free, unlimited Prime shipping; more exclusive deals and discounts; and more high-quality digital entertainment, including TV, movies, music, and books,” said Ghani.
Amazon has raised the U.S. Prime fee two times since launching the offering in 2005 — in March 2014 and May 2018.
March 22, 2018 Stockton / CA / USA – Amazon truck driving on the highway, the large Prime logo printed on the side
The tech giant first lifted Amazon Prime fees to $99 from $79 in March 2014. It then followed that up with an increase to $119 from $99 in May 2018. Amazon Prime prices have not changed since.
As Yahoo Finance previously reported this week, Jefferies analyst Brent Thill estimated a $20 fee increase on U.S. Prime subscribers (140 million or so) would imply $2.8 billion in additional sales over the course of 12 months, provided the hike doesn’t trigger member defections.