Amazon.com, Inc. (NASDAQ:AMZN) announced that the company is increasing the price of a Prime membership by $20 per year.
The price will go up from $100 a year to $120 a year starting today, April 27. The price change will go into effect for new subscribers on May 11, while existing Prime subscribers will have to pay the extra 20% starting on June 16 onwards.
An Amazon spokesperson said that you will not be able to renew your membership at the lower rate if your renewal comes up on or after June 16. This marks the second time the company has increased the price of a Prime membership as it was previously lifted from $80 to $100 in 2014.
The exclusive service now has more than 100 million paid subscribers around the world, with Amazon finance boss Brian Olsavsky noting that Prime is “the best deal in retail,” even with the new price hike. He adds that the company has been working towards making the service better and more attractive to consumers.
The e-commerce retailer made the decision to increase prices due to higher shipping fees and the offer of more benefits. A $120-a-year subscription is still cheaper than paying for the service month-by-month, which would set you back around $155 per year.
New benefits from Amazon Prime include faster shipping, Amazon Prime video access, music and streaming NFL games.
AMZN stock was up about 4.2% on the news Friday.
