Price increase at Amazon Prime! Who now has to pay more

For years, the price for the Amazon Prime subscription has been stable. That is now changing.

Amazon has announced a price increase for Prime membership in the US. Monthly fees are to rise to $14.99 from the previous $12.99. The world’s largest online retailer made the announcement Thursday after the U.S. stock market closed. The annual fee would be raised to $139 from $119.

First price increase for Prime subscription in four years

In the U.S., the price for Prime had last been increased four years ago from $99 at the time. “It’s about time,” expert Michael Pachter of Wedbush Securities had said before the publication of the quarterly figures, referring to higher transport costs. A majority of households in the U.S. use Prime, and there are more than 200 subscribers worldwide. Amazon Chief Financial Officer Brian Olsavsky said in a conference call that he expected some Prime users to quit, but in the past that has been limited. Revenue per Prime member increased significantly during the pandemic, he said.

When asked, an Amazon spokeswoman told atechbook that the price increase for the Prime subscription only affected the United States. Beyond that, they have nothing to announce at this time. In Germany, the costs for the Prime subscription have remained unchanged for years at 69 euros per year or 7.99 euros per month. In the U.S., Amazon has raised prices twice so far – in 2014 and 2018.

Why is Amazon raising prices?

According to the reuters news agency, Amazon wants to compensate for higher freight and labor costs with the price increase. Problems in the supply chains as well as a shortage of workers made the e-commerce giant difficult. As a result, Amazon expects first-quarter net sales to be between $112 billion and $117 billion, up three to eight percent. However, the market had expected even more with 120 billion dollars. After the announcement of the price increase for the Prime subscription, Amazon shares shot up ten percent in the after-hours trading.