The online retailer has raised its Amazon Prime fee by $20.
After discussing a possible price increase back in January, Amazon has finally made it official. The cost for a Prime membership is now $99 a year, a $20 increase from the previous $79 fee. Likewise, the company's Student membership price will increase as well, going up $10 to $49 a year.
This is the first time Amazon has increased Prime membership since the service launched in 2005. The $20 increase is likely a result of rising fuel and transportation expenses and the costs of running Amazon's growing library of streaming content. First word of a possible Prime subscription hike came a few months ago, with rumors indicating a rise as high as $40. Amazon Prime benefits include free 2-day shipping, unlimited access to streaming movies and TV shows, and one free Kindle book to borrow each month.
The new Amazon Prime pricing goes into effect on March 19. New customers who sign up before that date can still snag the original $79 fee for one year. Likewise, existing customers who have a renewal date before April 17 can also receive another year for the lower pricing.