Amazon Prime’s price is increasing again, because Jeff Bezos needs more money

Amazon Prime’s price is increasing again, because Jeff Bezos needs more money

Amazon Prime started out as a subscription for free shipping for online orders, but over the years has expanded into other benefits and categories, like extra features on Twitch and Prime Video. The ever-increasing benefits in turn has helped Amazon justify increased prices for Prime, and now the service is becoming more expensive yet again.

Amazon revealed in its Q4 earnings report (via The Verge and Variety) on Thursday that Prime’s price will soon be increased from $119/year to $139/yr, and for people who pay monthly, it will go from $12.99/month to $14.199/mo. The price hike will go into effect for new signups on February 18, and existing customers will see the increased price after March 25.

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The company said on Thursday that the price increase is due to “the continued expansion of Prime member benefits as well as the rise in wages and transportation costs.” The last price hike for Prime was back in April 2018, and before that, the price was raised to $99/yr in 2014. Amazon Prime’s original yearly cost was $75/yr.

Amazon also revealed other information in its latest earnings report, such as a 9% increase in net sales for Q4 2021 ($137.4 billion). The company’s stock price jumped to a high of $2,884,95 in after-hours trading, as analyst predictions for the past quarter were more conservative than Amazon’s actual results. The profits were boosted by Amazon’s 20% stake in the electric car company Rivian, and Amazon ordered 100,000 electric vehicles from the company for its own package deliveries.

The news comes ones day after Amazon workers at a warehouse in New York’s Staten Island filed a petition to form a union, while another union vote is the works at a warehouse facility in Alabama. The latter vote was ordered by the National Labor Relations Board, after the group found Amazon improperly interfered in the first election from April 2021.

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Corbin Davenport
Corbin Davenport

Corbin is a tech journalist and software developer. Check out what he's up to at corbin.io.

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