Price increases for Amazon.com, Inc. AMZN prime members went into effect on Friday.
What Happened: Existing as well as new prime customers will now have to pay $14.99 instead of $12.99 for their monthly subscription. For the annual subscription, customers need to pay $139 instead of $119.
The company previously hiked the price of Prime in 2018, when the cost of membership increased to $119 from $99. And in 2014 it raised the subscription fee to $99 from $79.
Amazon Prime provides members with free two-day shipping, as well as access to exclusive movies and TV shows.
Prime has more than 200 million members as of 2021, and is one of the biggest growth levers for Amazon’s core retail business.
Also Read: If You Invested $1,000 In Amazon Stock When Amazon Prime Was Launched, Here's How Much You'd Have Now
Why It Matters: The company is investing heavily in the Prime segment. More items are being added with exclusive deals and discounts, and more entertainment options are coming.
In February, Amazon reported fourth-quarter net sales of $137.4 billion, up 9% year-over-year. The sales figure came in shy of the consensus estimate of $137.6 billion, according to Benzinga Pro.
The company reported fourth-quarter earnings of $27.75 per share. It reported net sales of $469.8 billion, up 22% year-over-year. Full-year earnings per share were $64.83.
Price Action: Amazon shares closed at $3,295.47 on Friday, up 0.69%.
Also Read: Could Disney+ Be Entering The Livestreaming Market?
Photo: Diverse Stock Photos on flickr
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