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Amazon Hikes Cost Of Prime Service By 20 Percent

Amazon Prime.
Amazon Prime. Photo Credit: File

Amazon Prime is about to cost customers a few more dimes.

Actually, more than a few.

A 20-percent increase to be precise.

Citing new Prime features and increased costs, Amazon CFO Brian Olsavsky announced on Thursday afternoon that the cost of membership will be upped to $119 annually beginning on May 11 for new customers. Existing members will see their bill increased as of June 16.

Prime - once renowned for its free, expedited shipping - has introduced several new features since its inception, including streaming video, free two-hour delivery for certain products, Twitch viewing and deals for Whole Foods customers.

The announcement of the price increase is the first for Prime members in four years, when it was raised $20 from $79 annually to $99 annually. It is estimated that there are more than 100 million Prime members.

“The value of Prime to customers has never been greater. And the cost is also high, as we pointed out especially with shipping options and digital benefits, we continue to see rises in costs,” Olsavsky stated.

“We continue to increase the value of Prime, including speed selection and digital entertainment options. We've been expanding free same-day shipping and one-day options. And our two-day shipping, it's now available on over 100 million items, up from 20 million as recently as 2014. And we continue to add digital benefits like Prime Video.”

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