Sunday. 02.10.2022
RETAIL

Amazon increases the fee for its Prime membership service

At present, Amazon has more than 200 million paid subscribers worldwide.
The logo of the E-commerce company Amazon, is pictured on a warehouse in Kiekebusch. Photo: Patrick Pleul/dpa.
The logo of the E-commerce company Amazon, is pictured on a warehouse. Photo: Patrick Pleul/dpa.

Amazon is raising the price of its Prime membership service in the US, saying the step is due to higher costs, mainly wages and transportation.

Amazon also pointed to supply chain constraints due to Omicron variant of Covid-19.

The proposed price hikes also reflects the ongoing expansion in Prime member benefits.

While announcing strong fourth-quarter results, Amazon said the monthly fee for Prime subscription service will be increased to $14.99 from the current $12.99, and the annual membership fee to $139 from $119.

The price change will take effect on February 18 for new Prime members.

For current Prime members, the new price will apply after March 25 on the date of their next renewal.

This is the first time since 2018 that Amazon has raised the price of its paid subscription service Prime, which was launched in 2005. In the US, the initial subscription fee was $79, which was later raised to $99, and then to $119.

In its latest fourth quarter, the company's subscription services, including Prime, generated revenues of $8.12 billion, a growth of 15% from last year.

More products with free shipping

The company now said it continues to invest heavily in Prime, by adding 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, are also available for the service.

Since 2018 in the US, the availability of free same-day delivery has expanded to more than 90 metropolitan areas from 48. Items available for Prime free shipping have increased over 50%, and members have benefited from shopping on Prime day, a two-day only shopping event exclusively for Prime members.

The company also offers new programme benefits like prescription savings and fast, free delivery from Amazon Pharmacy. The benefits also includes continually growing Amazon Music for Prime members, Prime Reading, and Prime Gaming.

Prime Video has tripled the number of Amazon Originals since 2018. At present, Amazon has more than 200 million paid subscribers worldwide. As of October 2021, there were Prime members in 22 countries in North America, Europe and Asia-Pacific.

Amazon continues to offer Prime members around the world same-day delivery options, including free same-day delivery and faster same-day delivery, where Prime members can receive their order in as little as five hours.

Amazon increases the fee for its Prime membership service
Comments