After nearly three years, Amazon is finally increasing the price of its Prime subscription for its consumers in the US. With the latest increment, a yearly extension for an existing Prime subscription would now cost as much as $119. It’s effectively a 20% hike over the existing price of $99.
The new pricing isn’t, however, effective yet, and will only apply for existing member’s renewal starting June 16. Users having their yearly renewal cycle before that will be running lucky with the existing $99 for yet another year of Amazon Prime subscription. It’s however, worth highlighting that the new pricing will be effective for its new Prime subscribers starting May 11. Amazon has also confirmed the same in an official statement claiming that all existing Prime users will receive an email from their end with respective renewal details in May.
Amazon’s last price hike for its Prime subscription back in 2014 sent waves across its ever-expanding Prime subscriber base. At that time, Amazon had increased the price of the yearly subscription to the current $99 from $79. With that said, the price hike, despite resulting in widespread disappointment among its consumers; failed to stir up its existing subscriber base in the long run. Analysts speculate similar effects from this year’s subscription price hike.
Currently, Amazon Prime has a subscriber base of nearly 100 million consumers globally. It’s a very popular service, especially in countries like USA and India. A year of Prime subscription in the US offers not only free two-day shipping but also a hoard of features including access to Amazon Pantry, Prime Now, Prime Video, Prime Music and more. Furthermore, Prime members are entitled to exclusive discounts and even get access to majority offers during a sale day before standard Amazon customers.
Amazon has been heavily investing in its Prime program, thereby attempting to improve its quality of service with every new step. Recently, the Jeff Bezos led firm introduced a facility to home delivery parcels into customer’s house by using a service called Amazon Key. Furthermore, Amazon and UPS are closely working on a new feature called Prime Air, which would entitle Prime subscribers to receive deliveries in a jiffy via drones.