Amazon just raised the price of Prime

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Amazon just raised the price of Prime

By Gina Acosta - 01/19/2018

Amazon is making the case for customers to get an annual Prime membership by increasing the price of its monthly plan.

The company announced that the Amazon Prime monthly fee is increasing from $10.99 to $12.99 in the U.S., an increase of 18 percent. The new price works out to nearly $156 a year. The annual membership of $99 is not increasing.

According to CNET, customers of the Prime service, now estimated to reach 90 million U.S. households, routinely spend about twice as much on Amazon as non-Prime shoppers. An Amazon spokeswoman told CNET the increase resulted from Prime members' "tremendous appetite" for Prime benefits including unlimited two-day shipping, as well as Amazon's continued investment in Prime perks.

Friday's price increase is the first one Amazon has instituted since it created the monthly payment option in April 2016. Monthly payments were already more expensive for customers than the annual price, amounting to $131.88 a year. The total yearly cost will now be $155.88.

Since introducing Prime in 2005, Amazon has raised the annual membership fee just once, to $99 from $79 in 2014.

Read more about the increase by clicking here.