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Amazon decides to increase the value of the Prime subscription

As recently predicted by market analysts, Amazon confirmed this Thursday (3) a readjustment of US$ 20 in the subscription to the Prime service, initially only in the US. The annual plan went from $119 to $139, while the monthly plan went up from $12.99 to $14.99.

The new prices take effect from February 18th. For legacy subscribers, the adjusted charge will apply after March 25th.

To explain the increase, Amazon cited costs related to salaries and logistics, as well as the expansion of benefits offered to employees amid the pandemic.

Prime is considered one of Amazon's successful bets, serving as a tool to capture new customers. Image: Lutsenko_Oleksandr/Shutterstock

It is worth remembering that the retail giant also presented its fiscal report for the fourth quarter of last year on the same day. After announcing that profits practically doubled in the period, Amazon shares rose 13% this Friday (4).

The positive result was primarily attributable to a return on investment at electric vehicle maker Rivian and increased revenue from its cloud computing (AWS) and digital advertising divisions.

For some experts, the rise in Prime's price also played a role in the stock market's enthusiasm.

See too

Prime is one of Amazon's mainstays

Launched in 2005, the service is considered one of the pillars of Amazon's success, serving as a gateway for new customers, as well as capturing consumers' habits through their purchase decisions. In the US alone, Prime has 150 million subscribers, according to Digital Commerce 360.

The decision to raise prices, however, was already speculated behind the scenes, as Amazon last increased the price of Prime in 2018. It remains to be seen whether the novelty will also impact Brazilians' pocketbooks. For now, Amazon do Brasil has not confirmed whether the plans will be readjusted here. The monthly price for Prime in Brazil is R$9.90, while the annual plan costs R$89.

Source: WSJ

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The post Amazon decides to increase the value of the Prime subscription appeared first on Olhar Digital.

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