Brace yourselves, Amazon Prime subscribers: a looming membership fee increase is poised to shake the landscape, impacting both your wallet and perhaps your faith in one of the world’s largest tech giants.
At a Glance
● Wall Street analysts are predicting that Amazon will increase the price of its Prime membership in 2025.
● The potential hike could see the annual fee rise by as much as $20, from $139 to $159.
● The prediction is based on Amazon’s historical pattern of raising the price every three to four years.
● A $20 increase would generate an estimated $3 billion in additional annual revenue for the company.
Analysts Predict a Prime Price Hike
Amazon Prime members may soon have to dig deeper into their wallets, as Wall Street analysts are now predicting that the tech giant is due to increase the price of its flagship membership program in 2025. In a note to clients, J.P. Morgan analyst Doug Anmuth said a price hike could see the annual fee jump from its current $139 to as high as $159.
“Amazon Prime members may face a price increase next year, as analysts predict a potential hike in the annual membership fee,” Anmuth wrote in a report highlighted by Fox Business.
A Predictable Pattern
The prediction is not based on inside information but on Amazon’s well-established history. The company has consistently raised the price of Prime every three to four years to keep pace with inflation and the growing cost of its services.
● In 2014, the price went from $79 to $99.
● In 2018, it rose from $99 to $119.
● In 2022, it was increased to the current $139.
A price hike in 2025 would fit this pattern perfectly. The company continues to add value to the membership to justify the cost, with recent perks including new grocery delivery benefits and a free membership to Grubhub+.
A $3 Billion Windfall for a Booming Business
A potential price increase is not a sign of financial weakness at Amazon. The company’s other major divisions are thriving, with Amazon Web Services (AWS) growing 17% year-over-year and its advertising business now generating nearly $50 billion in annual revenue.
Instead, a price hike is about maximizing profit from one of its most successful products. With over 150 million Prime members in the U.S. alone, a $20 annual increase would generate approximately $3 billion in additional high-margin revenue for the company. Despite the potential for some members to cancel, analysts believe the vast majority of subscribers will absorb the cost, viewing the service’s benefits as indispensable.
