Amazon Prime Pricing Is Going Up But Here's How To Lock In The Current Rate
Amazon's popular Prime membership program that's loaded with benefits (beyond just free expedited shipping) is getting a price hike. In its latest earnings report, Amazon revealed that the cost is going up from $119 annually (currently) to $139 for a year-long subscription. Likewise, the $12.99 per month option is going up in price as well, to $14.99.
There's no mention on whether the reduced $59 Prime Student rate will go up as well, but reports suggest it will go up to $69. The updated pricing goes into effect on February 18, 2022 for new members, while any existing memberships that are due for a renewal for see the higher pricing after March 25, on whatever is the date of the next renewal.
"This is the first time Amazon has raised the price of Prime since 2018," Amazon stated in its earnings report.
Prior to that previous price hike, Prime memberships ran $99 per year, and debuted at $79 per year back in 2005. So it hasn't quite doubled in cost yet, but is getting closer. Amazon said the higher pricing is a result of "expanded Prime membership benefits" like more Prime Video content. Amazon also owns exclusive streaming rights for Thursday Night Football, though during an earnings call the company said that isn't the reason for the price adjustment.
Amazon is coming off a quarter in which its net sales went up 9 percent to $137.4 billion (PDF). Net sales for the full year rose 22 percent to $469.8 billion, resulting in a full-year profit of $33.4 billion.
How Lock In A Lower Amazon Prime Membership Rate
There is still time to lock in a lower Amazon Prime membership rate, but you'll have to hurry. For new subscribers, it's simply a matter of signing up for Prime and opting for the full-year membership. So long as you do this before February 18 (two weeks from today), you'll pay the current $119 rate and avoid the higher $139 until your renewal date in 2023.
If you're an existing subscriber, the higher rate goes into effect with your next renewal, but there's a clever workaround. It involves giving the "Gift of Prime" at the current rate, but this route takes some finagling. Here's what you need to do...
- Sign into your Amazon account
- Head to the Gift of Prime page and buy the 12-month gift option for $119
- Configured your Prime to NOT auto-renew or cancel it right before it's set to renew
- Once your Prime membership expires, redeem the Prime membership gift you purchased
Be aware that if you apply the membership gift to your account right away, it will not extend your membership period and will instead be exchanged for a gift card. The best way to do this is to set yourself a reminder to cancel your subscription a day before it's set to auto-renew. Then wait until the period is up and you're no longer a member, and apply the Prime gift you bought.
