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Published: Sat, January 20, 2018
Economy | By Melissa Porter

Amazon Increases Monthly Prime Membership Rate to $12.99

Amazon Increases Monthly Prime Membership Rate to $12.99

Amazon raised the monthly rate for its Prime service by 18% on Friday, from $10.99 to $12.99.

As we've said before, Amazon Prime is well worth the $10.99 a month (discounted to $100 if you buy it on a yearly basis) for the free shipping, the movies, the books, and the litany of random discounts.

Prime membership for students, discounted at half the monthly cost after a six-month trial, rises to $6.49 under the new pricing structure. These changes are going into effect today for new customers. The monthly plan allows customers to cancel at anytime. The price of an annual Prime Student subscription is remaining the same at $49. That's a $24 increase for the year, which comes out to a yearly rate of about $156.

Amazon introduced the monthly Prime plan in the U.S. in early 2016 as an alternative to the relatively high cost of its annual fee, which it raised from $79 to $99 in early 2014. Since then, Prime membership growth has been the strongest among households making less than $50,000 annually, an R.W. Baird study found. If you're on the monthly plan and wind up sticking with Prime for a year, you'll pay nearly $156.

The cost builds come as Morgan Stanley sees signs that Amazon Prime's development is beginning to moderate.

Amazon shares are up 1.6% premarket.

Here's the email Amazon is sending out to customers. One-day and same-day delivery is now available in more than 8,000 markets. "We also continue to introduce new, popular and award-winning Prime Originals.Members also enjoy a growing list of unique benefits like Prime Music, Prime Reading, exclusive products and much more".

The investigation, which incorporates information from 500 Amazon clients, gauges Amazon Prime supporters spend twofold the $700 every year the normal non-part spends on the site.

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