Amazon Prime confirmed the rise in its membership prices

If you are an Amazon Prime subscriber or planning to purchase the service, be prepared to shell out more money. And it is that Jeff Bezos’s company is increasing the rate in the United States to reach $139 dollars per year. Previously, the price was $99.

The price increase is made to balance the higher costs that Amazon now has in all areas of the company, from the shipping service to labor and construction, the company reported today in an official statement.

The price change will enter effective for new members on February 14 and for existing members after 25 of March. The price of a monthly membership to Amazon Prime also goes up to $14.99 dollars per month, when before it was given at $12. 99 per month.

Amazon also noted that it increased prices due to the continued expansion of benefits for Prime members, as well as increased wages and transportation costs.

Higher costs led Amazon’s operating income to fall substantially during the last quarter from 2021, down to $3,500 million when last year they registered $6,900 million. This is the second quarter in a row that Amazon’s profits have declined.

The last time Amazon raised the price of Amazon Prime was in April 2018. Before that, the price increased to $99 per year in 2014, after having remained at $79 dollars per year for almost a decade since its launch in 2005.

Amazon Prime exceeded 200 million subscribers last year. Amazon has continued to expand the service’s offerings. In addition to offering faster shipping, it now also offers access to Prime Video, streaming music, Twitch perks and more.

Amazon CEO Andy Jassy said some cost increases that the company faces are only short-term challenges, but they will continue in the coming months.

According to Jassy, ​​Amazon had to face higher costs due to labor shortages and inflationary pressures during the holidays, and these problems persisted in the first quarter due to Omicron.