Amazon to raise Prime price nearly 17 percent

Amazon is raising its Prime prices nearly 17 percent, the first price increase for the membership since 2018.

The price for Amazon Prime’s annual subscription will go from $119 to $139. The monthly subscription price will also rise, from $12.99 to $14.99.

The price change will take effect for new Prime subscribers on Feb. 18 and for current Prime members after March 25, Amazon said in a press release on Wednesday. 

“With the continued expansion of Prime member benefits as well as the rise in wages and transportation costs, Amazon will increase the price of a Prime membership in the U.S.,” the press release reads. 

Along with the increase in Prime membership prices, Amazon also announced financial results for its fourth quarter of 2021, which ended on Dec. 31.

The company made $14.3 billion in net income in the fourth quarter of 2021, compared with $7.2 billion in the fourth quarter of 2020. 

The country’s operating income, meanwhile, dropped in the fourth quarter of 2021 to $3.5 billion in 2021 compared with $6.9 billion in the fourth quarter of 2020.

“As expected over the holidays, we saw higher costs driven by labor supply shortages and inflationary pressures, and these issues persisted into the first quarter due to Omicron. Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic,” Amazon CEO Andy Jassy said in a statement.