Amazon increases its monthly Prime membership rate to $12.99

Amazon increases its monthly Prime membership rate to $12.99

The annual Prime membership stays at $99.

Inc. says existing monthly members will start paying the higher fees next month.

Amazon raised the monthly rate for its Prime service by 18% on Friday, from $10.99 to $12.99.

Amazon also increased the price of its monthly Prime Student membership, from $5.49 to $6.49.

Amazon Prime members enjoy free two-day shipping on purchases from the online retailer; unlimited access to Prime Video, Prime Reading, and Prime Music; and unlimited storage on Prime Photos, among other perks and discounts.

Amazon launched the monthly option a couple of years ago to attract customers who could not afford a one-time payment of $99, or those who knew that they would not be able to take advantage of an Amazon Prime membership for all the months of the year. Prime members spend considerably more on Amazon than non-Prime members. That is an additional $8.99 a month and is not increasing. "Leaving the annual rate as is fits with their strategy to encourage customers to see Amazon as a brand that will be part of their regular lives, rather than a monthly purchasing consideration".