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Customers with existing Prime memberships will receive the new pricing for renewals that initiate on or after April 17

Well, that didn’t take long. It was just over a month ago that Amazon was talking about raising the price of its Prime subscriptions. Amazon CFO Tom Szkutak made it clear that prices for the yearly service could increase by as much as $40/year.
 
Well, it looks as though the gauntlet has been thrown down, and customers will see an increase of $20 a year, bringing the total to $99.


Someone has to pay for those drones...
 
In a letter to customers, Amazon writes:
 
We are writing to provide you advance notice that the price of your Prime membership will be increasing. The annual rate will be $99 when your membership renews.
 
Even as fuel and transportation costs have increased, the price of Prime has remained the same for nine years. Since 2005, the number of items eligible for unlimited free Two-Day Shipping has grown from one million to over 20 million. We also added unlimited access to over 40,000 movies and TV episodes with Prime Instant Video and a selection of over 500,000 books to borrow from the Kindle Owners' Lending Library. 
 
For more information about your Prime membership, visit our Prime membership page.
 
Sincerely, 
 
The Amazon Prime Team
 
The new pricing will go into effect for new Prime members starting March 19. For current Prime members, the new pricing will go into effect for susbscriptions that renew on or after April 17. Pricing for Student Prime memberships will also be increasing from $39 to $49.

Tell us what you think in the comments section.

Sources: Amazon [1], [2]



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Amazon Prime increase
By fischerms80 on 3/13/2014 9:54:37 AM , Rating: 2
For amount that I ordered from amazon the 79.00 was my upper limit for this service. At 99.00 I will let the membership run out.




RE: Amazon Prime increase
By gookpwr on 3/13/2014 12:17:31 PM , Rating: 2
I agree with you fischerms80. $79 was my limit as well and though I do enjoy the perks of free streaming and free 2-day shipping, but with having to pay taxes on my purchases now, and the increase in Prime prices, I don't think I'll see the ROI that I did before. When I made out on the deal, or even broke even i was happy, but I'll be losing on the deal now. I'll shop elsewhere from now on.


RE: Amazon Prime increase
By marvdmartian on 3/13/2014 3:59:59 PM , Rating: 4
I still say that Amazon should have offered an "a' la Carte" Prime membership.

Prime offers 3 services:
1. free 2-day shipping
2. Kindle lending library
3. streaming movies & TV shows

The only one of the 3 that's worth anything to me, is the free shipping. Offer that at $49/year, and I'd likely jump on it.
Other people may only want the streaming shows, or the Kindle lending library.....or a combination of two of the services, but not the third. Make a lower price if you're only wanting part of the full Prime deal, and you'll pull in more customers.

Instead, Amazon took the cable TV company approach, and told everyone, "You get all or nothing, and you'll pay whatever we charge". Fine. I'll stick with the occasional (pre-Christmas) free 30-day membership, and cancel before it's through!


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