Very recently, Amazon announced that it has 100 million Prime members. In the latest announcement from the retail giant, Amazon said that it intends to increase the price for Prime membership by about 20 percent for US users. The announcement was made by CFO Brian Olsavsky during its quarterly earnings call.
It was the CFO himself who announced the spike from $99 a year to $119. The revised price will be effective from May 11th for new members and June 16th for existing ones. Amazon believes that the time is ripe and 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,” notes Olsavsky.
Additionally, Amazon has also hiked the price for monthly Prime subscriptions by about 24 percent that made it around $156 per year recently. But this is the first time that Amazon is shooting up its annual member’s fee in the past three years. One has to wait and watch if the membership numbers will change now or not!