Amazon Prime will soon be $140: Here’s how to lock in the $120 rate for another year
Thursday, but also bad news for customers: the online retail giant is raising the price of its popular Amazon Prime membership. The price will soon drop from $119 to $139 for annual subscribers, and for monthly members from $13 to $15 ($156 to $180 for 12 months).
The bump marks the first time Amazon will raise prices on Amazon Prime since 2018, when the cost jumped from $99 to $119 per year ($11 to $13 per month). The premium subscription service originally launched in 2005 at $79 per year.
As of December 2021, approximately 172 million people subscribed to Amazon Prime, according to a report by Consumer Intelligence Research Partners. The report notes that Amazon Prime added 30 million new subscribers over the past two years.
Even if the price goes up, there are ways to maximize your current subscription or take advantage of the old price before it’s gone. Read on to learn all about Amazon Prime’s price change and how you can save money.
How much is Amazon raising the price of Prime?
For the majority of people, the price of Amazon Prime will drop from $119 per year to $139, or from $13 per month to $15.
Prices will also increase for students and other low-income subscribers. Prime Student members will soon pay $7.50 per month, or $69 per year. For recipients of electronic benefit transfer and other eligible forms of government assistance, the monthly price will increase from $6 to $7.
When will the price of Amazon Prime change?
The price changes will take effect on February 18 for new Amazon Prime accounts. For existing accounts, the price increase will take effect on the first renewal payment after March 25, 2022.
How can I save money before the Amazon Prime price changes?
If you’re considering an Amazon Prime membership, now is the time to do it. Pricing will change for new accounts on February 18. If you purchase an annual subscription before then, you’ll lock in the $119 annual rate until 2023.
Current Amazon Prime members should check their Amazon accounts to see if they are monthly or annual subscribers. If you’re a monthly subscriber and upgrade to an annual subscription, you’ll also lock in the $119 rate until next year.
Can I buy a future Amazon Prime subscription with a gift card now?
Savvy bargain shoppers have noted that Amazon’s “premium gift” service can be an effective method to extend the current price rate. If you buy a gift subscription from Amazon Prime before the price change and activate it when your existing subscription expires, you’ll get another year for $119. If you sign up for an annual account before February 18 and purchase another $119 annual gift subscription, you won’t pay the new annual rate of $139 until 2024 (although you will pay $238 up front).
Why is Amazon raising the price of Prime?
Despite better than expected fourth quarter results, Amazon gave several reasons for the price hike in its press release, including more big budget shows on Prime Video like The Wheel of Time, Jack Reacher and the upcomingas well as his at NFL Thursday Night Football. The company also touted expanded availability for same-day delivery in 90 US metro areas, free shipping on more items, and more product deals.
What services does Amazon Prime offer?
Amazon Prime originally launched with free, unlimited two-day shipping for many of its products, and this core service remains its most popular perk. However, Amazon Prime has since expanded its offerings and now includes many more benefits.
Here are the biggest services provided by Amazon Prime:
- Free two-day, next-day or same-day shipping
- Free grocery delivery via Amazon Fresh
- Discounts at Whole Foods
- Free streaming video via Prime Video
- Free music streaming via Amazon Music
- Free magazines and books through Prime Reading
- Unlimited photo storage on Amazon Photos
Visit the Amazon Prime information page for a complete list of services included in an Amazon Prime subscription.
Who are Amazon Prime’s competitors?
More expensive Amazon Prime subscriptions might make competing services more attractive, but there aren’t many.which currently costs $98 a year, offers expedited delivery and groceries, but the supermarket chain’s service doesn’t offer the many TV shows, movies, music and games included with Amazon Prime.
Target and Walmart both attempted to compete with Amazon Prime Day, a massively popular annual two-day sale for Amazon Prime members. Target has launched its own Target Deal Days and emphasizes that no membership fees are required. Similarly, Walmart launched its own Deals for Days promotion for three days in June 2021.
Competitors like NewEgg Premier and Google Express have struggled to compete with Amazon Prime. NewEgg launched Premier in 2014 but shut it down in December 2019. Google Express also launched in 2019, but it lasted less than a year.