The price of Amazon Prime membership is about to get more expensive.
If you’re like me, you probably have come to rely on some of the perks Amazon Prime offers such as free two-day delivery, its video streaming service or exclusive Prime Day sales. And like me, you’re probably wondering why the price of Amazon Prime is going up.
Why Is Amazon Prime Going Up?
Amazon, the world’s largest online retailer, recently said that rising operational costs, particularly a hike in wages and transportation expenses, have made it necessary to increase the price of its loyalty program.
In this article, we’ll explore the Amazon Prime price hike and what it means for you.
How Much Is Amazon Prime Going Up?
“With the continued expansion of Prime member benefits as well as the rise in wages and transportation costs, Amazon will increase the price of a Prime membership in the U.S., with the monthly fee going from $12.99 to $14.99, and the annual membership from $119 to $139,” the company said in a recent news release.
Let’s break that down: If you pay for Prime on a monthly basis, you’ll be charged an extra $24 over the course of the year. If you pay for Prime annually, you’ll pay $20 more than you previously did.
When Does the Amazon Prime Price Hike Go Into Effect?
The price increase takes effect first for new members, Amazon said in a news release.
For new members, the price hikes will go into effect beginning on February 18, 2022. For existing members, the new price will start after March 25, 2022, on the date of their next renewal.
How To Avoid Amazon Prime’s Price Hike for One Year
If you want to enjoy Amazon Prime without paying extra at least for another year, there’s a simple way you can it.
This tip comes from the great people over at Tom’s Guide: All you have to do is gift yourself (or someone else) a full year of Prime membership before the new pricing begins. This will effectively freeze the price of Prime at $119 until 2023.
Here’s how to buy a Prime membership as a gift. Note: You’ll be charged for Prime plus any applicable taxes.
In its news release, Amazon said that more perks are on the horizon. For me, the biggest news is that the NFL’s Thursday Night Football broadcast will find an exclusive home on Amazon this fall.
Does that mean that Prime — and its price increase — is worth it? It depends on what you value about the perks, but this quiz can help you decide.
Are you a big Amazon shopper? Here are some ways to save.