Amazon hikes Prime subscription price by $20, the first increase in three years

Amazon is raising the price of its annual Prime subscriptions, with yearly memberships now costing $139 instead of $119.

The online retail giant announced the price increase for the service, which includes free same-day delivery in certain cities and video streaming, during its fourth quarter earnings report on Thursday. New subscribers will start paying the higher price on Feb. 18 while current members will pay more starting after March 25, on the day that their annual plans renew.

In addition to raising annual prices, Amazon hiked the price for customers who pay month-to-month, to $15 monthly from $13.

In explaining the price increase, the company cited “continued expansion of Prime member benefits as well as the rise in wages and transportation costs.”  

Amazon also raised the price of its annual Prime Student plan from $59 to $69.

The previous price hike for Prime came in 2018, when Amazon raised the bill to $119 from $99, and hiked its monthly price to $13 from $11.

Investors were buoyed by the latest price increase, sending Amazon’s shares up 17% to $3,280 in after-hours trading on Thursday.

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