Amazon is increasing the cost of Prime membership from $99 to $119

During today’s quarterly earnings call, Amazon CFO Brian Olsavsky announced that the cost of an annual Prime membership will be increasing from $99 a year to $119 a year. Prime student membership will also increase from $49 to $59 annually. The price for new members will increase on May 11th, so if you sign-up for Prime before then, you’ll still pay $99 for your first year. For existing Prime members, the price will increase on June 16th, so if your renewal date is after that, you’ll pay the new price.

The last time annual Prime membership fees increased was 4 years ago in 2014 when they went from $79 a year to $99 a year. Earlier this year, Amazon increased their monthly Prime membership dues from $10.99 per month to $12.99 per month. “The value of Prime to customers has never been greater,” Olsavsky said. “And the cost is also high, as we pointed out especially with shipping options and digital benefits, we continue to see rises in costs.”

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  1. djino says:

    Are the prime student accounts remaining at $49?

  2. Jp says:

    First one is free ;)

  3. Mark B says:

    Total BS and corporate greed. $177 Billion in revenue last year and they have the nerve to increase prices that drastically?

    They really do need to be broken up into different companies Asap rather than later. Even then that might not be enough. No company should have HALF of all E-commerce sales. That’s just wrong and utterly Un-American. How big do we let them get before we say enough? I like my 2 day shipping and multiple Fire TVs but it’s not worth feeding this beast anymore.

    • Nick says:

      Then stop buys my from them.

    • Chris says:

      No one has to buy from Amazon, so if Amazon has dominated e-commerce, its because they are doing it better than anyone else. Success is un-American? There’s nothing *more* American than having a reasonable expectation that one’s hard work will be rewarded with success. Otherwise, why would anyone (or any company) even try? Do you really want to live in a world where delighting customers is punished?

      • Micahel says:

        While I agree with some of what you say, I must admit you’ve taken it a bit too far here. If companies raise prices, customers do have the option to simply not buy from them, however companies would rather people say something about it. You cannot simply say, “if you don’t like it, don’t buy it”, or “don’t go”, etc. Feedback is important to companies, and many times it’s how policies are developed. I remember when Disney raised prices beyond $300 for their annual passes, they received a lot of negative feedback, however some of that feedback included suggestions, such as interest free monthly payments. So comments help companies.
        I wonder if we can buy ourselves a “gift membership” and just redeem later. I did that prior to the last increase. And this time it’s a smaller percentage increase, but still a bit one.
        Kind of surprised they didn’t just raise it $10.
        I think they have calculated how many people will cancel versus keep it, or new members to be above that 20% level.

        • Chris says:

          I agree, and I am not trying to imply that the only options are to suck it up and pay or take your business elsewhere. Feedback is a great tool for change when used appropriately. All I was trying to say by “no one has to buy from Amazon” is that people still have choices when it comes to e-commerce, so calling for Amazon to be broken up simply for being successful is not warranted.

        • Joe says:

          95% of disappointed customers NEVER tell you — they just LEAVE. Money talks in America. If you don’t like it — go somewhere else. FREEDOM is AMERICAN.

        • Red says:

          Yes, buying yourself a gift of Prime will work fine. Little downside as long as you don’t mind “prepaying”. If later decide not to use it a gift of prime can just be used as a $99 account/gift credit. Discussions re this on dansdeals, DOC etc.

    • bolski says:

      Think about it. That’s still $10/month. That is WAY below even most basic cable TV monthly fees. Amazon would have to start charging $420/year to catch up with what you pay for most basic cable subscriptions. Yes, it seems bad, but if you think about it, that’s $120/year, not month. Couple your cable subscription along with your internet fees and then you’re probably looking at $120/month. So $120/year is STILL much cheaper than what you pay a year on cable and internet.

    • Rusty Shackelford says:

      All the belly aching is strange. I rarely enter a retail store because of how amazing Amazon is. I’ll gladly continue at $10/month to get free two day shipping and a decent amount streaming content.

      • pmcd says:

        This is quite common and is probably contributing to the demise of retail stores. Might’ve a problem once people can’t first see their purchases in a store only to order it off Amazon later.

        I really like Amazon but the move away from retail stores is not exactly helping with a reported increasingly isolated population. Something weird is going on with people losing the capability to communicate in person with other humans,

        In any case $10/month does not seem unreasonable.

    • Joe says:

      I agree — Then dont buy from them. Seriously illogical comment. You sound so angry — find PEACE.

    • KevyKev says:

      Wow. Just wow. Have you seen the content and potential savings through Amazon Prime? I bet you also complained about Netflix going up to from $10 to $12 and still pay $100 for tv service. Check your priorities man.

  4. OG Charlie says:

    Glad I got out when I did. No regrets.

  5. InIrons says:

    Works out to be $10 @ month, still a pretty good deal

    • Tech3475 says:

      Only if you use the various services or buy enough to justify the expense.

      • bolski says:

        most people use it for the free shipping, and then a lot more for the video content. So, it’s STILL cheaper than what you pay per month for cable and even Netflix.

        • Tech3475 says:

          So what I said then.

          I know someone who gave up prime years ago because they didnt use video, music, etc and for what they bought paying for shipping or buying elsewhere made more sense.

          I wonder how many of those people also have Netflix though?

  6. Oreily says:

    Jeff Bozo is Full Of CR$P! I will never pay this amount!

  7. Andy Munro says:

    I think a 20% increase is too much. They can’t justify it by saying you get more for your money. I don’t use those things and should be able to opt out of them and pay less. We should see a tiered a la carte Prime membership, otherwise Prime is as bad as the Cable and Satellite companies that make you pay for channels you never use !

    • CowWrangler says:

      Agreed. I just want the shipping option, and that’s it. Also get rid of the Add-On bull crap.

      • Erin says:

        You can order Add-on items using Alexa and get free shipping on them without needing to hit the dollar threshold. Little-know Alexa perk, at least for now.

  8. Upset Prime Customer says:

    Should’ve seen this coming once they started handing out reduced rates for low income families. We had to know they would try to recoup it from the rest of us.

    I won’t be renewing in Sept, and I will be canceling the Chase Amazon CC I have too.

  9. James Anderson says:

    For the year ended December 2017 I earned $765.21 in rewards for the use of my Amazon Prime Chase Card. I placed 90 orders with Amazon making the cost of each deliver $1.11. Throw in the movies I purchased that we on sale and other benefits it seems like a good deal to me. Netflix is much more expensive.

    • Kevin Klein says:

      And, they are convenient as hell. One stop shop for most anything… and I don’t have to spend money on gas, pay a fare, put miles on my car, waste time walking around the store, standing in line, etc. I’m totally OK with this.

  10. Upset Prime Customer says:

    This means in 4 years they have raised the amount 50 percent from what it was at the start of 2014.

    From 79.99 to 119.99

  11. Jim B says:

    I just bought a mattress w/prime and got free shipping! I use fire & other services as well. However, a $20 increase is a bit much! I hope Amazon will reconsider the amount of the increase!

    • Just a user says:

      It’s not “free” shipping. You’ve paid for it through the Prime membership fee. You’re exactly the kind of customer Amazon likes to attract.

  12. TechyChris says:

    Will Amazon still be offering free standard shipping at the $25 price point? I assume yes to compete with Walmart. If so, PRIME is becoming extinct. Their music service is a mess compared to others, the video service is lame at best, a couple decent originals and some old movies. I usually spend at least $25 on an order so who needs it for shipping? For this price I would like to see a basic live tv package thrown in as well as more new content. And allow us to upload and store our own music. Amazon is starting to remind me of another behemoth…COMCAST!

    • Micahel says:

      Agreed about the Prime Music. It took me 6 tries with Alexa to get her to play Gregorian Chant music. Ugh. They really need to fix it. I had to search online to find Prime Music Gregorian Chant music and there were a ton, but she would only play them if I stated the precise title.

      • Tony Ramirez says:

        Also to have the balls to charge extra for Unlimited Music well there Unlimited music is joke. Many albums are missing so they have Garth Brooks exclusive. He does not have many albums and it cheaper in the long run to buy his albums on CD’s (I will do that as they will show up in there Music app) then pay an extra $79 a year.

    • OG Charlie says:

      The $25 free shipping tier is beyond crippled. You’re lucky to get your item in a week and a half unless you pay $10 for 4-5 day shipping.

      Everything is a scam designed to push you towards Prime (SO CHEAP! SO CONVENIENT!) and, once you’re a member, to push you towards every other services they provide. Wouldn’t you like Music Unlimited? Wouldn’t you like to upgrade to unlimited cloud storage? Wouldn’t you like to subscribe to Amazon Channels? Wouldn’t you like to subscribe to AudibleGold? Wouldn’t you like to subscribe to your second favorite Twitch streamer? Wouldn’t you like…

      I’d rather just wait until I need $35 of something and do same day pickup from Walmart instead of dealing with a company that’s constantly turning the screws.

  13. Charlie says:

    Can’t say this is good news and I wonder why, if they needed the cash, the 20.00 increase and not 10.00. I do enjoy my Prime membership, mostly for shipping and Prime Video, but 120.00 is not chump change to a lot of us. I would gladly give up about half the stuff included to keep the current rate.

  14. Shop Around says:

    The lowest prices can often be found elsewhere these days!

    • Dave says:

      This. I’ve been trying to tell people this for quite some time now and no one believes me. For example, about two weeks ago, I was about to purchase an item from Amazon (not a third-party seller either) which was going to cost me $120.00 + tax. Then, I decided to shop around at other retailers. Best Buy, Walmart, and Target were all selling the exact same item for less. In fact, Target had the lowest price at $94.69 + tax. I placed my order on and picked it up that same day. I saved $25 and was able to enjoy my item immediately. Just because Amazon is the largest online retailer doesn’t mean they are the cheapest.

      • James Anderson says:

        Anyone that does not price compare to keep Amazon honest is just throwing away their money. Depending on the item Ebay might be lower or a big box store if they have it on sale. To save money shop around. I would same Amazon is the lowest price about 50 percent of the time.

      • Chris says:

        Price != value. Amazon generally has the better value proposition for me even on the occasions when the price is a bit higher. You saved $25 on the price, but how much is your time spent shopping/driving around worth? Gas and mileage added to your car isn’t free either. And what if something goes wrong? I don’t know about you, but based on my experience, I’d rather deal with Amazon’s customer service than anyone else’s.

        • Dave says:

          With the advent of online shopping, most retailers now have an online website to purchase products. And many of those retailers will hold your merchandise at the customer service desk. For me, I sat at a picnic table outside of my office and ate my lunch. No driving necessary. I used the Target app on my smartphone and placed the order. The Target store is literally right off of the road on my way home. It took me 5-10 minutes to pull off of the road, park, walk into the store, pick up my item at the customer service counter, get back into my car, and drive home. It was also nice to be able to examine the product before walking out of the store to ensure that there was no damage. For me, the value in purchasing an item from a physical store is the satisfaction of being able to examine an item before leaving the store and knowing that I am receiving an item that is not damaged from shipping.

        • Len Mullen says:

          Price is half of the value equation. More when you are comparing the exact same product from two merchants. Amazon is a lot like Comcast. Each is trying to find the highest price enough consumers will bear for their services while working feverishly to lower the cost to offer those services. When they find their sweat spot, you will be with them or have moved on. I would not pay $99.99 for Prime. I have Prime now because Alexa offered me a better rate last summer. I may keep Prime because their two day shipping has become so reliably unreliable that I can extend my subscription indefinitely by complaining about missed shipping dates.

  15. bolski says:

    Basically, your monthly rate was increase by $1.66. That’s actually not bad compared to when you’re cable bill goes up by $10/month.

  16. Bori says:

    Ive been a Prime for since it was $80 I am now canceling my subscription. $120 is just to much.

  17. BingeWatchFever says:

    With the increase, they need an option to eliminate ads on the FireTV. Advertizing has gotten worse than cable, pushing upgrades and subscription fees to channels like HBO, Showtime, etc.

    Maybe the increase is to cover losses and legal costs surrounding allegations of sexual abuse and dismissal of actors in two of their top rated shows. Could be to help finance the buyout of Ring.

  18. FtG says:

    I’m wondering what the deal will be for renewing at the lower rate using the “Gift of Prime” gift card method. I.e., you buy the gift card at the low rate, wait until your Prime subscription is expiring, apply the gift card??? How long can you hold onto the gift card before using it? Ours is a long way off.

    (If you are already a Prime member and you redeem the gift card it converts to an ordinary Amazon gift balance.)

  19. Joe says:

    Ending custom music storage AND charging $20 more per year?

    Starting to wish they would charge separately for all the various benefits. All I really care about is shipping and video. (I know, probably the two most expensive benefits.)

    • Tony Ramirez says:

      Don’t forget there add-on crap, extra for Prime Music, extra for Prime Pantry, extra for add-on channels video content. Lets not forget the constant ads promoting there stupid original content.

      Really lucky my sub renewed before June at the older rate but next year I might consider dropping my Prime membership

  20. Tony Ramirez says:

    Wait reading comments from people I am already hearing it is still cheaper than a cup of coffee garbage analogy.

  21. francis g says:

    Does anybody know if you can buy gift cards for prime before it raises and apply?

  22. Tampa8 says:

    Yes you can gift yourself a Prime Membership, then redeem it after yours expires.

  23. JoeB says:

    Hopefully they will more benefits

  24. Norman Penn says:

    The package Amazon offers through Prime Membership an excellent value. Many more excellent services then just shipping or streaming. Examples… Amazon copied Costco with member only specials on Prime. I have saved over half my membership on a Prime only sales and get one Kindle Book free each month ($5 average) additional savings. Free photo cloud backup has already saved a few misplaced photos. Prime one of the best values out there if one takes advantage of the package offerings.

  25. Carter S. Johnson says:

    The only area I can see this biting them is with Twitch Prime subscribers. That extra $20 may not be seen as great a trade off for free pedestrian caliber PC games and loot. My Prime renewed last month so I’ll see how I feel about the increase next year. I am happy about the elimination of the music match storage charge.

  26. Thomas 114 says:

    Lol the funny thing is all the people that could pay early and get the discount instead they cancel lol then regret it later ,start new membership and pay full price anyways haha ,bet half them are bluffin anyways when they say they are canceling.they want to,but they are hooked hahahahahahahaha!!!

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