The company added millions of new subscribers after previous price increases, and analysts say Amazon probably won’t lose many customers once the latest hike goes into effect.

Prime subscribers also get access to movies, sports programming and photo storage, among other perks. Amazon has invested billions of dollars to ensure packages get to customers on time amid an acute labor shortage and supply-chain bottlenecks. The increase announced Thursday is the first since 2018. “Despite the option to pause and re-start monthly membership, our data suggests that only a very small percentage truly cherry-pick their Amazon Prime months.” “Even though monthly members pay somewhat more on an annual basis, members like that they have a smaller cash outlay and the perceived flexibility,” said Josh Lowitz, CIRP’s co-founder. The strategy worked, and 52% of subscribers now pay each month, according to Consumer Intelligence Research Partners.Įven though they pay more, monthly subscribers are almost as loyal as annual members, with about 97% of them likely to renew compared with 99% for their counterparts, said the Chicago research firm, which conducts quarterly surveys. The company introduced the monthly subscription in 2016 to attract more middle- and low-income shoppers.

That’s because they pay each month, a fee that’s rising to $14.99 from $12.99.

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