Amazon.com is raising the annual Amazon Prime cost for membership on its estimated 126 million U.S. Amazon Prime subscribers.
The price will rise to $139 in 2022, a $20 hike from the current $119 annual membership, in place since 2018. For those who pay by the month, fees climb from $12.99 to $14.99.
The online retail powerhouse announced the 17% increase alongside its fourth-quarter financial results. Amazon outlined its case for the $20 bump – the typical hike when it boosts Amazon Prime subscription fees:
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"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," Amazon Prime vice president Jamil Ghani said in the Q4 press release.
The Amazon Prime subscription price increase goes into effect Feb. 18 for new members and March 25 for current members.
We wrote back in January that Amazon, which tends to hike subscription costs in four-year cycles, was largely expected to raise membership fees this year.
Of course, the retail picture in 2022 versus 2018 is a lot different – and a lot darker. Amazon and other retailers are facing plenty of challenges: supply-chain issues, worker shortages and wage increases for employees.
Also, when Amazon last raised its Prime membership cost, Walmart’s alternative, Walmart+, wasn’t around. It is now, offering free next-day or two-day delivery, prescriptions and gasoline discounts among its perks, all for $84 a year. Plus, given the general tension about inflation, Amazon risks a wave of consumer anger over this latest Prime price increase.
Amazon isn't the only popular subscription service that has upped its prices in recent years. Netflix has increased fees charged to its users three times since 2018, including a $1 to $2 hike this year, and Hulu has raised fees for its services multiple times in the past three years.
-
I'm a Government Employee and Need to Get By Until the Shutdown Ends. What Can I Do?The second-longest shutdown in history is leaving many federal workers with bills due and no paycheck to cover them. Here's what you can do to get by.
-
Grant Cardone Tells Us the Biggest Retirement Mistake You Can MakeThe entrepreneur, real estate investor and motivational speaker tells us why people should never stop working.
-
I Found the Best Gifts Under $50 and None of Them Feel CheapAmazon October Prime Day is the perfect chance to nab some under-$50 gifts that feel more expensive than they are (because normally they would be).
-
Amazon AI on Prime Day: Deal Helper or Upsell Machine?Amazon’s Rufus chatbot, Alexa voice deals and Amazon Lens can change how you shop on Prime Day. Here’s how to use them wisely — and avoid being upsold.
-
How to Safely Get Your Amazon Packages This SeasonWorried about porch pirates? From Amazon lockers to secure lock boxes, here’s how to protect your holiday deliveries.
-
I Live Next to a Costco Business Center. Here Are 5 Things You Won't Find at a Costco WholesaleYou don't need to own a business to shop at a Costco Business Center. Here are five reasons to visit the one near you.
-
Last Chance to Shop These Under-$100 Prime Day Deals for a Smarter, Safer Home: Ring Doorbells, Nest Thermostats, Leak Detectors and MoreThese under-$100 Prime Day deals on Ring, Blink, Nest and other top smart home brands are disappearing after today.
-
Sam's Club Takes On Amazon Prime With Big Summer Savings — But Is It Worth Joining?With longer sales and seasonal deals, Sam's Club is making a strong case for summer value. Here's how to save.
-
FSA or HSA-Eligible Amazon Prime Deals You Can Shop NowDouble down on savings by taking advantage of these FSA or HSA-eligible early Prime deals. Save on the smart rings, air purifiers, baby gear and more.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
