Shubham Sawarkar
Amazon is increasing the price of its Prime membership in the United States to $139 per year, up from $119 per year. According to experts, the price increase is intended to address rising prices Amazon is seeing across the board, from shipping to workers to construction.
New members will see a price increase on February 18th, and current members will see a price increase after March 25th, 2022, on the date of their next renewal. The cost of a monthly Prime subscription is also increasing, from $12.99 to $14.99 per month.
Amazon is not the only company to adjust its Prime plans Netflix also increased its plans in the last week of January 2022.
If you want to try Amazon Prime now, then take a 30 days trial of Amazon Prime or Try Amazon Prime at just $119/year or $12.99/month from now to February 18th, 2022. If you miss Prime now, then the new prices will apply for the new members (as above mentioned) from Feb. 18th, 2022, so make a wise decision.
Amazon justified the price hike by citing “the continued expansion of Prime member benefits as well as the rise in wages and transportation costs.” For the time being, the price of Prime in other countries is not changing. Amazon said on a teleconference call with investors that it examines pricing in different countries every year, but that it had no new announcements.
Amazon’s operational income dropped significantly in the fourth quarter of 2021, falling to $3.5 billion from $6.9 billion a year earlier, according to the company’s earnings results announcement Thursday, Feb. 3rd, 2022. Amazon’s profit has dropped for the second quarter in a row.
Amazon last increased the price of Prime in April 2018, claiming increased shipping and other benefits as the reason. Prior to that, in 2014, the pricing was hiked to $99 per year after being at $79 for over a decade since its debut in 2005.
Last year, Prime reached 200 million users. Amazon has continued to enhance the service’s capabilities, expanding from fast shipping to include Prime Video, music streaming, Twitch incentives, and more.
Amazon CEO Andy Jassy said some cost hikes the company is facing are “short-term challenges” but will continue in the coming months. Amazon “saw higher costs driven by labor supply shortages and inflationary pressures” during the holidays, Jassy said, “and these issues persisted into the first quarter due to Omicron.”
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