Amazon is raising its annual Prime membership price from $99 to $119, according to chief financial officer Brian Olsavsky.
The e-tailer, which released its financial results for the first quarter on Thursday, made the announcement during its earnings call, citing the service’s rising costs.
When the plan rolls out, all new subscribers will be charged the increased amount starting May 11. For current members, the new pricing will take effect on June 16.
The move comes only a few months after it raised prices in January for monthly Prime memberships from $10.99 to $12.99. The change took effect immediately for new members, and for existing members the changes were implemented on Feb. 19.
For the first quarter ended March 31, Amazon saw sales rise 43 percent to $51 billion. The figure soared past analysts’ bets, with share prices seeing a significant jump in after-hours trading.
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“Amazon Web Services had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” CEO and founder Jeff Bezos said in a statement. “As a result, the AWS services are by far the most evolved and most functionality-rich. AWS lets developers do more and be nimbler, and it continues to get even better every day. That’s why you’re seeing this remarkable acceleration in AWS growth, now for two quarters in a row.”
Last week, Amazon also disclosed in a letter to shareholders that the number of Prime members now exceeds 100 million around the globe.
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