Retail Channels

Amazon Prime is raising prices

It's the first price increase since 2018.

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Amazon Prime prices are rising.

Amazon is raising the price of Amazon Prime for the first time since 2018. In February, the price rose rom $119 to $139 for annual subscribers.

While analysis already indicates that it won't cause much churn, the announcement of rising costs led others in the market to offer discounts, Winsight reports. Immediately after Amazon's announcement, Target offered a 50% discount for its delivery service, which is called Shipt.

While Amazon Prime is the original subscription commerce service, the price increase comes at a time when supply chain issues and inflation have led to challenges across the ecommerce ecosystem. Amazon also faces competition. Walmart and Kroger each launched their own subscription programs in recent years, as well.

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