Uh oh, Amazon is increasing its monthly Prime membership rate
Pretty much everyone out there has ordered something from Amazon at least once in their lifetimes. And if you haven’t, then oh boy, are you missing out. Seriously, the online retailer carries everything from quirky doormats, to gourmet potato chips, and everything in-between. And when you’re an Amazon Prime member, you get even more options and a whole lot of benefits — and free shipping. But now, Amazon is increasing its monthly Prime membership rates, and some people are not going to be happy.
Previously, a monthly Amazon Prime membership cost $10.99, and the annual membership fee was $99. But now, the company is upping the cost and charging a monthly Prime membership fee of $12.99, raising the total cost by $2.00. While that might not seem like much, it’s still a bit unclear why the company decided to start charging more. But it may be because the company wants more people to switch to an annual membership instead of paying month to month (the annual fee is not increasing at this time).
Speaking to Reuters, analyst Ivan Feinseth explained, “[The price raise is a] good value, over time they’ve raised the price. I don’t think they will lose many members.” If you do the math, you’ll find that it’s much cheaper to subscribe to Amazon Prime yearly rather than monthly, even though it might cost you more up front.
Feinseth also explained that Amazon probably isn’t too worried about losing customers. “Those who use it the most get the most value and won’t mind the higher price and those who don’t use it are not the best customers, so even if they drop off it is not a big loss to Amazon.”
But that doesn’t mean that monthly Amazon Prime customers don’t have a right to be a little surprised and upset about their new bill.
Also, if you’re only subscribing to Amazon on a month-to-month basis for access to Amazon Video, there’s a plan specifically for that, at $8.99 a month. (P.S., If you haven’t watched the Amazon original series The Marvelous Mrs. Maisel, then I suggest you upgrade to an annual Prime membership and get on that as soon as possible.)
It really is a much better deal to get the annual membership, something Amazon clearly wants customers to try out with their new increased monthly fee.