This morning, Amazon quietly made a few changes to its Prime membership pricing model. Typically $11 per month, the online giant is raising its popular two-day shipping service fee to $13. Those opting for an annual subscription will still pay the same $99 as before.
Amazon’s Prime service has seen a number of changes in recent years, with the addition of more content, streaming services and perks. Its pricing model has largely stayed the same throughout this time but rising costs for content production and licensing fees were sure to catch up eventually.
The $99 per year subscription plan has always been the best value when it comes to a Prime membership. Amazon’s decision to raise the monthly fee to $13 results in a total yearly cost of $156, a roughly 50% increase over an annual membership. This change is set to come into effect today for new subscribers, while those already on monthly plans will see the change come February.
Amazon will continue to offer Prime discounts to students, however those with education plans will see a slight rise in price as well. The new pricing structure raises the price per month to $6.49, which stays in line with the previous 50% discount. Amazon’s Prime Video service will remain untouched at $8.99 per month under the new plan.
Earlier this month we noted Amazon’s record-breaking holiday season. Last year, Amazon shipping over 5 billion items under its Prime umbrella alone. Amazon has increased its inventory of eligible two-day shipping products from 20 million to 100 million in recent years, with same or one-day delivery available in some 8,000 cities.
Amazon has become a more heavily scrutinized company as it has grown, and moves like today’s change will garner more attention than ever before. Prime membership ultimately is an invaluable resource for avid Amazon shoppers with the annual $99 membership proving more valuable than ever before.