Amazon.com Inc raised the price of its annual Prime membership in the US by 17% from $119 to $134, the company announced on Thursday.
For those who subscribe on a month-to-month basis, the price will go up to $14.99 per month from $12.99 per month. The Prime Student price is also reportedly going up from $59 per year to $69 per year.
The price increase is a means to offset the increasing costs of shipping and wages that it expects to continue this year.
In extended trade, the retail giant’s shares rose as much as 17% as Amazon also beat profit expectations for the holiday season.
This isn’t the only subscription service hiking prices, as streaming services like Netflix and Hulu have done the same in recent months.
In 2018, Amazon had increased its annual fee from $99 to $199. The change in price will go into effect from February 18 for new customers; the current Prime membership price will be in effect after March 25, on the date of their next renewal.