The cost of Amazon Prime is about to jump by 20 percent. But current subscribers have a little bit of time left to re-up their subscription at the current rate.
Amazon said it's going to raise the cost of an annual Prime subscription to $119, up from $99, starting on May 11. Amazon chief financial officer Brian Olsavsky made the announcement during a call with Wall Street analysts today (April 26).
The $119 annual price will hit new Amazon Prime subscribers first. The company says that existing customers will be able to renew their subscription for $99 through June 16.
The reason for the price hike? Olsavsky told analysts it's to reflect the rising costs of running the program, with more products eligible for free two-day shipping than ever before. The Amazon executive also noted improved features added to the program in recent years.
MORE: What Is Amazon Prime?
Free shipping is one of the major perks for Amazon Prime, but it's not the only benefit subscribers enjoy. Prime customers also get access to Amazon's streaming services for free, plus access to the Kindle Owners' Lending Library. Prime subscribers also enjoy discounted rates on FreeTime Unlimited, special deals and access to one-hour delivery on products from local stores in some cities.
While this is the first hike to Amazon Prime's annual rate since 2014, when the cost went from $79 to $99, Amazon raised rates for subscribers who pay on a monthly basis to $12.99 per month earlier this year.
Last week, Amazon CEO Jeff Bezos said that Prime now boasted more than 100 million members.