Amazon Increases Annual Fee for Prime Membership – February 2022
February 24, 2022
On February 3, 2022, Amazon announced that the company will increase the annual price of Prime membership in the U.S. from $119 to $139 – representing a 17% increase. This price hike is the first to hit since 2018 and is meant to offset inflation, rising wages and transportation costs.
Annual membership prices are rising across the board. Updated pricing will go into effect for Prime member sign-ups beginning on February 18, 2022, and will apply to current Prime members after March 25, 2022, on the date of their next renewal.
The price of Prime monthly membership is increasing from $12.99 to $14.99, and the price for Prime Students will increase to $7.49/month, with the price of the annual membership increasing to $69/year. Memberships for qualifying EBT and government assistance recipients will increase to $6.99/month.
In addition to Prime membership fee increases, Amazon also announced increased Fulfillment by Amazon (FBA) fees for third-party sellers at the end of 2021. Across the board, Amazon is likely facing elevated costs of business as the company reported a massive increase in Amazon sellers, which pushed their storage and fulfillment capabilities to new limits. Navigating supply chain constraints caused by the COVID-19 pandemic continues to prove challenging as well.
Since program inception 17 years ago, Amazon Prime membership has only seen three price increases, but they have now become a customary event at four-year intervals. Initially the program was priced at $79/year in 2005 and then saw rate increases in 2014 ($99/year), 2018 ($119/year), and 2022 ($139/year).
Even with significant price increases, Amazon is likely to continue to have high customer retention rates, as society has become accustomed to (and now demands) convenience and instant gratification – two important needs that Amazon fulfills for its customers through its platform simplicity and free 2-day shipping. When combined with the other benefits attributed to Prime membership, such as Prime Video, Amazon Music, Prime Day, Prime Exclusive Deals, and much more, Amazon has become a staple service for many American households.
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With customers paying more for annual Amazon Prime memberships, they will rightfully require a seamless purchasing experience, in-stock products available through Prime shipping, and reliable 2-day delivery.
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To learn more about how ZQUARED can help you stay ahead of Amazon’s ever-changing rules, contact ZQUARED at 234-ZQUARED (978-2733), fill out our Contact Us form, or email us at firstname.lastname@example.org.