Amazon officially raises it’s Prime subscription price from $20 to $139 – here’s why

​​Amazon is increasing its annual Prime subscription fee from $119 to $139 per year in the US. Though the price of their monthly subscription will also increase for $2. This price hike amounts to a 17% increase. Amazon announced raising their price at their earnings report on Thursday. The retail giant had last raised their prices in 2018 when they hit the $99 annual membership fee price.

The Amazon Prime price change will take effect on Feb.18, 2022. While for existing Amazon Prime members, the updated price will be effective after March 25, 2022. Or on the date of their next renewal. Here are the price changes to watch out for:

• Annual subscription – From $119 to $139
• Monthly subscription – From $12.99 to $14.99
• Student subscription – From $59 to $69

Amazon Prime is increasing price, annual membership from $119 to $139 and monthly fee from $12.99 to $14.99. Price change in effect for new members on Feb 18th and for current members will apply after March 25, on date of next renewal. pic.twitter.com/6FXhtEsLwK

— Wario64 (@Wario64) February 3, 2022

Amazon said in a statement that they are raising their prices due to “expanded Prime membership benefits.” Which are the broadened free same-day shipping and additional Amazon Prime video contents. The price increase will also cover the increasing costs of transportation and labor in their distribution network.

Moreover, Amazon Prime’s decision results from the price increase of almost everything. From food to energy, all costs have gone up these past few months. In addition, Amazon’s workforce has also increased twice for the past two years totaling 1.6 million employees now. They have also raised their employees’ wages last year.

That's what I call #inflation: Internet giant #Amazon said it will increase price of a Prime membership in the US. Monthly fee going from $12.99 to $14.99, annual membership from $119 to $139. First time Amazon has raised the price of Prime since 2018. pic.twitter.com/ZElKuhGbYR

— Holger Zschaepitz (@Schuldensuehner) February 3, 2022

Although the price increase will affect consumers, Amazon was the last to raise its price. As other streaming platforms like Netflix and Hulu have already increased subscription fees in the previous months.

If subscribers find the Amazon Prime price increase a significant cut on their budget, splitting it with another user can help save the cost. Or if you are a new subscriber and looking into getting into Amazon prime, it’s cost-effective to sign up for their Amazon Prime Rewards Visa Signature Card. This card comes with a usable $100 gift card upon approval.

Meanwhile, Amazon’s earning reports show that they earned double ($14.3 billion) during the last quarter of the year. A major jump in their revenue was due to their investment in electric vehicle company Rivian Automotive. Which represents a huge IPO in November.

Despite last year’s profits, analysts foresee Amazon facing an uphill encounter in the next quarters. Last year’s earnings were heightened with the increased online shopping. When customers have no other way of shopping as Covid-19 vaccines weren’t available yet. There’s a huge difference now since Covid vaccines are now widely available.