Amazon Prime: a place where your orders can be shipped, if eligible, within a span of two days; a place where you have access to unlimited movies and television shows, like the famous Night Manager. Not to mention, Amazon Prime is a place where you can actually borrow books from the Kindle Owners’ Lending Library.
But, there’s a catch – at least, there is now.
On Friday, Amazon (NASDAQ:AMZN), which is based in Seattle, Washington, announced that it was going to be increasing the price of its monthly plan for Prime membership. By how much, you ask? When the changes go into effect, consumers will see a nearly 20% increase from the previous price for the Prime membership monthly plan.
Keep in mind that the online retail behemoth stated today that the price for an annual membership will not be altered, remaining at its set price of $99.
What started out as a way to lure shoppers to its site, Amazon first added the monthly payment option two years ago and it has since skyrocketed. But will it remain as popular now that the company has hiked the price up? Maybe. Amazon is such a sought-after company, even more so as of late with all of its acquisitions, so I want to say that consumers will continue to pay the new price, even if they aren’t happy about the changes.
As for the numbers, monthly members will now have to pay $12.99 a month. For reference, members used to be required to pay $10.99. Further, college students will see a new price as well, from having to pay $5.49 a month to $6.49 month.
If I could guess, I feel like the college students might stop using the monthly service (because anything over $5 is out of our budget) but for the most part, I don’t think it’s going to negatively affect the company’s financial plan.
Featured Image: twitter
