Amazon raised the yearly Prime membership fee from $119 to $139 as part of its fourth-quarter earnings report on Thursday.
Amazon last boosted Prime’s pricing in 2018 to $119 from $99. It upped the subscription rate to $99 from $79.
Amazon’s annual price increase is around 17%. Amazon has increased the monthly Prime membership fee from $12.99 to $14.99. The new fees go into effect on February 18th, and current members will be billed after March 25th.
Amazon Prime, launched in 2005, offers free two-day shipping and exclusive access to movies and TV shows. Globally, the service had over 200 million subscribers as of April.
Amazon’s core retail business membership program is still a major growth driver. Prime members buy more frequently and spend more money on Amazon than non-Prime members.
Amazon is hiking Prime prices as it deals with supply chain delays and workforce shortages. In a tight labour market, the company hiked wages and offered signing incentives. It diverted packages over longer and more expensive distances to facilities with enough employees to handle them.