Amazon prime annual subscription prices are going to climb to $139. The company made the announcement after its earning result. It increases the price last in 2018. The price went up to $119 from $99.
To establish the connection in price range, Amazon’s price rose to $99 from $79 four years ago. We can say the company is increasing its price after every four years.
With the price increase in prime membership, there was also a surge in the monthly price. It went up from $12.99 to $14.99. The new member can see the increase in price from February 18, 2022. The change in price will reflect on the current member’s bill from March 25.
The price went up high, taking the demand into consideration. The investment in Amazon prime increased over time. Prime today is not like what it was a year ago. Raising the prices now was necessary with increased investment.
Amazon’s eCommerce business is facing challenges. The supply chain is one of them. And, the audience focuses on video more now. Amazon is expecting increased revenue from the advertising business. Amazon stock has done very well, but there are still issue. And, the company is dealing with it. The stock prices went up to 14% on Thursday.
Amazon Prime launched in 2005. It gave its member free two-day shipping. It also featured all the exclusive shows and movies. With pandemic, the service grew up to 200 million subscribers worldwide.
Amazon’s retail business incorporated the membership program. And it became the biggest lever for it. Prime members spend and buy products from Amazon.
The increase in price centers towards its issues with labor constraints. The company raised money to attract labor. The market today is tight and causes disruption in functioning. It had to reroute the packages. It increased the cost of service.
We can say the increase in Amazon Prime subscriptions comes as no shock.