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20 January 2018, 04:14 | Frank Carlson
Amazon is the world's largest online retailer
Amazon.com Inc (AMZN.O) raised the monthly fee for the US version of its fast-shipping and video-streaming service Amazon Prime by $2 on Friday, making the case for subscribers to upgrade to an annual plan. Well, guess what? Your monthly subscription is rising to $12.99 from $10.99, which works out to $156 a year.
The online retailer is increasing the cost of its membership program for those who opt to pay its fee in monthly installments.
Amazon added the monthly Prime service about two years ago as a way to rope in holiday shoppers or those who couldn't afford the $99 fee all at once.
According to "Cowen analyst John Blackledge", Prime's subscriber base has 60 million USA members, with about 54 percent of US households paying for the service.
With Amazon Prime membership, customers get free shipping, free access to Amazon's streaming TV service and streaming music, exclusive discounts, early access to deals and other perks.
Amazon is looking to repeat the success of its Prime programme for consumers by introducing Business Prime Shipping for Amazon Business customers in the United States and Germany.
Student plans are also seeing an increase from $5.49 to $6.49, Engadget reported. The Seattle-based shopping and technology giant is raising the monthly fee for Amazon Prime services from $10.99 to $12.99. The new rates will kick in starting February 18, 2018. Amazon's monthly Prime price increase comes one day after the company announced the 20 finalists for its second corporate headquarters. Prime members can check their membership page for more information on when they will charged. The yearly lump sum for a Prime membership, however, will not go up from the current $99.
Amazon has not revealed details on the number of Prime subscribers but a report by Consumer Intelligence Research Partners (CIRP) estimated it had 90 million in the United States as of September.
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