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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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5 strategies for optimal inventory management on Amazon

Accurate inventory is now essential for Amazon FBA sellers, writes Emplicit's Evan Sherman.

a cart with boxes on shelves

Amazon used to be a lot more laissez faire about how Fulfilled By Amazon (FBA) sellers used their fulfillment centers. Sellers could send in inventory, and, while the space wasn’t unlimited, if their sales were not as forecasted they would simply pay long-term storage fees. Sure, if a seller’s inventory management was poor enough they would have their inventory storage limits reduced and pay higher storage fees, but this was just an incentive not to let things slide too much.

However, in 2022 Amazon reduced storage limits overall to the point where some FBA sellers had sales and catalog size impacted, and in March 2023 Amazon revised their inventory system. There is now an incentive for FBA sellers to be highly accurate with inventory management because Amazon will reward them with increased storage limits. Precision is a carrot now, rather than a stick.

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