Get ready to pay more for your Amazon Prime monthly membership, because the company is raising its prices by nearly 20%. According to Recode, the company is announcing that it will raise the price on monthly Amazon Prime fees from $10.99 to $12.99 in the U.S., or almost $156 a year, an increase of 18%. Amazon’s student Prime membership is also jumping 18%—from $5.49 to $6.49. The changes go into effect today for new customers, while existing customers will see the increase on their February bill.
So if you want to make the most of Amazon’s free two-day shipping, Amazon Video (minus One Mississippi, or course), Amazon Music, or get a discount at Whole Foods, you’re going to have to fork over more of your paycheck each month to Jeff Bezos, who is already the richest person in the world.
The company is mostly likely increasing the price of its monthly Prime membership to make signing up for Prime’s annual subscription—which is still priced at $99 (or $49 for students)—look like a much better deal. The annual subscription gives Amazon a more guaranteed revenue stream, and that fancy new second headquarters isn’t going to pay for itself.