A news that has caught many by surprise. But this week, Amazon announced the rise in the price of the Prime subscription in the United States. The cost goes from the current $99 to $119. This change will take effect from 11 May for new members. For those who already have this subscription, it will become effective on June 16th.
Amazon will raise the price of Prime in the United States
This is the first time in four years that Amazon has made the decision to raise the price of Prime in the United States. This decision on the part of the company was also quite unexpected.
Amazon Prime Price Rise
The company’s own CFO has come forward and commented on the reasons for this price increase. Apparently, it is mainly due to the increase in costs that the company is having. Especially in relation to shipping and digital benefits. Since the last time the price was raised, new services have been introduced, such as Prime Now. Thanks to this service you can buy and receive products in less than two hours.
Services like this have greatly helped Amazon’s popularity. At the same time, however, they incur higher shipping costs as the product has to reach its destination at high speed. An option that has become popular in the United States.
In just over two weeks, this price increase on Amazon Prime will take effect for users in the United States. It remains to be seen whether this decision will have an effect on the number of subscriptions to the service.