Sign In

The Price of Amazon Prime Is Going Up (Again)

You might want to disable your subscription's auto-renewal.
Amazon Prime price increase

Amazon is doing great. The company recently announced that it "blew the doors off revenue and profit expectations in the first quarter." It also reportedly has more than 100 million Prime members. And in March, Amazon CEO Jeff Bezos overtook Bill Gates on the Forbes World Billionaires List, making him the new wealthiest man in the world.

So we're more than a little miffed to hear that Amazon chose this time to raise the price of a Prime membership again.

SEE ALSO: Amazon Will Increase the Price of Its Monthly Prime Subscriptions

The last time Amazon increased its yearly Prime membership price was in 2014, when the subscription jumped from $79 to $99. Now, four years later, it's increasing by a not-insignificant 20%. And recall that Amazon also hiked the price of its monthly memberships from $10.99 to $12.99 back in January of this year. Read on for the full details of this latest Amazon Prime price change.

When Will the Amazon Prime Price Go Up?

New subscribers will pay the new rate starting on May 11, but current members have another month before it kicks in. On June 16, existing members will begin paying the new $119 rate, depending on when their renewal period occurs.

Prime Price Hike to Cover Increased Costs

Amazon CFO Brian Olsavsky cited a couple reasons behind the Prime price increase in a call with investors. Costs have apparently gone up due to shipping expenses as well as spending on digital content. He also claims that the program is much different now than it was in 2014, which is when the last increase happened.

Once again, Amazon is blaming a Prime price hike on higher shipping costs.

It's worth noting that Amazon also cited increased shipping costs, as well as the cost of providing Prime perks, when it raised monthly membership rates in January.

Can You Still Get Amazon Prime for $99?

Inventive DealNews readers, as well as some Reddit users, have suggested that there could be a way around the price increase — for now. These shoppers say that a current subscriber can gift themselves another year of Prime to temporarily lock in the lower rate. Unfortunately, we haven't tested this workaround; we can't say for certain that it'll work for you.

If you'd like to give this a try, visit Amazon to buy a gift membership. Send the "gift" to the email you use for your own Prime membership.

SEE ALSO: 14 Confusing Things About Shopping on Amazon

You'll apparently need to turn off auto-renew in order to make this trick work, and apply the gift membership no sooner than one day after your current membership expires. Otherwise, the price could be applied to your account as a merchandise credit. Since gift memberships don't expire, you could theoretically stockpile several for the next few years.

Buyer beware! According to an Amazon spokeswoman, if your regular renewal is on or after June 16, you won't be able to prepay for another year at the lower rate.

Readers, will you pay for Prime at the new price? Take our poll below, and then leave your thoughts in the comments below!

Senior Staff Writer

Julie joined DealNews in 2015. Her work has been featured on MSN, Business Insider, Lifehacker, The Motley Fool, GoBankingRates, and Moneyish. In her spare time, she enjoys baking sweets, reading thrillers, and listening to an ever-growing list of podcasts.
DealNews may be compensated by companies mentioned in this article. Please note that, although prices sometimes fluctuate or expire unexpectedly, all products and deals mentioned in this feature were available at the lowest total price we could find at the time of publication (unless otherwise specified).
You might also like