Amazon Prime

Amazon Raising Annual Fees for Amazon Prime Membership

As expected, Amazon is hiking the cost of Amazon Prime membership for the first time in four years.

Amazon.com is raising the annual cost of Amazon Prime 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:

"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.

Analysts also expect Costco to increase its membership fees in 2022.

Most Popular

Why Are Gas Prices Still Going Up?
spending

Why Are Gas Prices Still Going Up?

The cost of a gallon of gas is at an all-time high. What’s driving the surge and will gas prices go down anytime soon?
May 23, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
Which States' Taxes Are Going Down
Tax Breaks

Which States' Taxes Are Going Down

State lawmakers are cutting income, sales and property taxes to return budget surpluses to residents.
May 25, 2022

Recommended

Why Are Gas Prices Still Going Up?
spending

Why Are Gas Prices Still Going Up?

The cost of a gallon of gas is at an all-time high. What’s driving the surge and will gas prices go down anytime soon?
May 23, 2022
When Is Amazon Prime Day 2022?
Amazon Prime

When Is Amazon Prime Day 2022?

Amazon Prime Day landed in June last year and October the year before. Amazon just let us know it will drop in July this year. But what date?
April 29, 2022
How Our Family Fights Inflation
Budgeting

How Our Family Fights Inflation

Millennials typically spend more than other generations on certain expenses that have been increasing most rapidly. Here are some tips to cut your los…
April 27, 2022
17 Worst Things to Buy at Dollar Stores (Dollar Tree Included)
spending

17 Worst Things to Buy at Dollar Stores (Dollar Tree Included)

These discount retailers stock plenty of bargains, but not all of the merchandise is worth the buck, especially since Dollar Tree’s price increase.
April 19, 2022