The higher monthly fee - which brings the annual payment to almost $156 (from $132) for people who don't want to commit to a full year but end up staying with Prime for that long anyhow - may make Amazon's annual membership more appealing to some.
Since its $3.3 billion acquisition of Jet and the hire of Jet founder Lore, Walmart appears to believe that Amazon's emphasis on Prime has left a segment of e-commerce to be disrupted. On an annualized basis, that makes Prime's monthly rate more than 50% higher than its yearly rate.
Moody's Lead Retail Analyst Charlie O'Shea said in a statement that Amazon's monthly deal "still affords members a more budget-friendly option, with the ability to "flex" the membership as they see fit". Amazon's argument is pretty straightforward: "We give you lots and lots of stuff under Prime, that costs us money, so, unfortunately, we need a little more money from you".
The new fee will be $12.99 a month, up from $10.99, but customers may also opt for an annual membership of $99, which is unchanged.More news: Murphy Signs Order Combating Gender Inequality
Free two-day shipping enthusiasts, listen up: the price of a monthly Amazon Prime membership is going up.
Amazon is bumping up the price of its monthly Prime membership. The company also started offering a subscription option for only Prime Video, without the shipping benefits the program is most famous for.
That last point is key; Amazon's yearly subscription price is, so far, not shifting.
Consumer Intelligence Research Partners estimated in October that Amazon had 90 million Prime members.
The fee kicks in today for new members. That means that if you stick with the service for a year at the montly rate, you will pay $24 more than before, for a total price of about $156. You may manage your Prime membership anytime by visiting Your Account.