Amazon Bumps up Monthly Prime Membership 18 Percent

Amazon is raising the price of Prime monthly memberships by nearly 20 percent

Amazon has raised the price of monthly Prime memberships in the U.S. by $2 to $12.99 (£9.40), in a bid to push more people to an annual plan.

The price increase takes effect immediately for new members, and on February 19 for existing members.

Amazon raising the price of the monthly membership is a clear indication that the company wants to get a yearly commitment.

Amazon also said it would raise the price of its monthly Prime option for qualified students, who will see their fees go to $6.49 a month from $5.49.

The annual membership option, which requires customers to pay a one-time fee of $99, is not increasing at this time, according to Recode.

Only Prime has the added dimension of offering subscribers discounts and other benefits from its shopping platform, which help the company lure more buyers. For those doing the math, this means that keeping a monthly Prime subscription for one year will cost them $156.

Amazon has also had success with its Prime Now service.

Free two-day shipping enthusiasts, listen up: the price of a monthly Amazon Prime membership is going up.

- Amazon Prime fees are on the rise for customers who are charged on a monthly basis. "We also continue to introduce new, popular and award-winning Prime originals", the company said in a statement. Amazon Prime Student members will continue to pay the $49 annual fee.

Amazon has confirmed the price increase with TechCrunch and laid all of this out on its Prime page.

If you're on government assistance, that price won't change ($5.99 per month), and if you're only paying for Amazon Prime Video without all of the shipping benefits, you'll see no difference ($8.99 per month). But most people will agree that, even with the new pricing, Prime offers customers an excellent value.

Prime membership is growing, though Amazon itself will only say that it has "millions" of customers.

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