Amazon Prime price increase
Amazon gave no specific reason for the price increase, beyond a statement that it continues in its "unwavering" conviction that Prime is the best value in the history of shopping.
The monthly cost for an Amazon Prime membership has gone up, the company announced on its Prime membership website Friday.
It's not just regular Prime members who are being affected by this, Amazon's monthly Prime program for students are also getting whacked too. Monthly payments were already more expensive for customers than the annual price, amounting to $131.88 a year.
Prime customers, now estimated to reach 90 million United States households, routinely spend about twice as much on Amazon as non-Prime shoppers. That is an additional $8.99 a month and is not increasing.
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The monthly payment option was seen as a way to attract lower-income customers - the type of shopper who might otherwise prefer, say, Walmart - who could not cough up $99 at one time.
It will still cost $99 for an annual membership for those who pay up front. "The number of items eligible for unlimited Free Two-Day Shipping increased in recent years from 20 million to more than 100 million items".
"This isn't really a surprise", Forrester analyst Brendan Witcher, said of the Amazon price increase, noting that retailers routinely introduce new services then tweak the pricing.
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