Amazon is dominating every sector of the e-commerce market and closing on the gap to become the first trillion dollar company. Still, it isn’t so friendly with its users since the company will be increasing the yearly Prime subscription cost from $99 to $119.
This change will occur starting from May for new user accounts and the existing Prime users who are due on or after June 16th will have to pay this new amount for renewal. Amazon say it will be notifying the current users on this update via emails.
This change won’t have any effect on the monthly subscriptions of $12.29 which is equivalent to $156/year. Earlier this month, Amazon revealed that they have over 100 million paid Prime members worldwide.
An Amazon spokeswoman said ” Since we increased the U.S. annual price of Prime four years ago both the value of Prime and the cost to offer it have increased significantly. We still believe that Prime is disproportionately more valuable than the fee.” Amazon offers free shipping and also digital streaming service, so the hike in fee will act as a counter measure to the running costs for the company.
Although this update may not go down well with many users and many of them shall be giving up their Prime membership, Amazon will be making more and more money with the $20 increase without having to bring in more customers.