Starting May 11, Prime annual memberships will jump $20, from $99 a year to $119 per year. Current members will switch to the new pricing structure at their time of renewal, from 18 June.
There are so many perks to having a Prime account like Amazon Dash (instant reorder buttons), Amazon Fresh and Pantry the companys grocery service, and the list keeps growing.
Amazon executives said Thursday that the 20 percent increase is due to higher costs to maintain the program, such as shipping fees. This is the first increase to annual pricing in almost four years.
Amazon recently increased the price of its monthly Prime membership in January from $10.99 to $12.99 per month.
The number of Prime subscribers has ballooned in recent years.
Amazon's results bucked expectations that it would plow more profit into investments, as it has done in the past. In the previous quarter, it had profits of more than 1.8 billion dollars. And while Amazon banned paid reviews a year and a half ago, the Washington Post says that hasn't stopped some sellers from recruiting reviewers on social media sites, reporting that in February there were almost 100 Facebook groups, one with 50,000 members, for the objective of sourcing positive reviews.
Amazon's cloud-based services, called Amazon Web Services, was a bright spot, with revenue up 49 percent to $5.4 billion.
"The significant acceleration in Other revenues suggests Amazon's advertising ambitions continue to ramp quickly, and is now large enough to drive upside in Amazon's margin profile", said Baird Equity Research analyst Colin Sebastian in a note. Revenue was up 43 percent compared to the period a year ago. Amazon CEO Jeff Bezos - the world's richest person with a net worth of $112bn - in a statement attributed AWS' success the seven years it had to figure things out before serious competition arrived.