Amazon Prime price warning: Millions face huge rise in subscription fees next month

Amazon is hiking Prime prices for the first time in almost four years. The online retail giant has just announced that all customers in the US will see their subscription jump from $12.99 to $14.99 per month from March 2022. There’s also a rise for those who pay for Prime upfront with that price going up from $119 to $139.

The huge hike will also hit anyone joining Prime later this month with the rise targeting new users from February 18.

This hike comes as Amazon has recorded $14.3billion in profits which are almost double that of a year ago.

Confirming the price hike, Amazon said In a message posted online” “Amazon will increase the price of a Prime membership in the U.S., with the monthly fee going from $12.99 to $14.99, and the annual membership from $119 to $139.

“This is the first time Amazon has raised the price of Prime since 2018. For new Prime members, the price change will go into effect on February 18, 2022, and for current Prime members, the new price will apply after March 25, 2022, on the date of their next renewal.”

There’s no word on when or if Amazon will hike prices in other parts of the world including the UK with the company simply saying that it had no news to announce about other countries “at this time”.

If you weren’t already aware, Prime offers a number of benefits including free and faster delivery on items bought from Amazon’s online store.

It also allows subscribers to watch content via its Prime Video streaming service and there’s access to other platforms including Prime Music steaming and unlimited photos storage.

In the UK, Prime costs £7.99 per month or £79 per year. However, if Amazon copies what it’s just done in the US then things could rise by around £2 per month.

Speaking about the firm’s record-breaking year, Andy Jassy, Amazon CEO, said: “As expected over the holidays, we saw higher costs driven by labor supply shortages and inflationary pressures, and these issues persisted into the first quarter due to Omicron.

“Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic. When you combine how we’re staffing and scaling our fulfillment network to bring even faster delivery to more customers.

“There’s a lot to look forward to in the months and years ahead.”