Amazon has announced that it is raising Prime membership fees from $99 to $119 a year.
The new pricing will be effective from 11th May.
Follows increased monthly fee
The price hike is the first time in four years that Amazon has raised Prime annual fees, when customers paid $79 a year in 2014.
Amazon also increased the monthly subscription fee in January by almost 20%, from $10.99 to $12.99.
The new annual membership cost is still a better deal than the monthly subscription fee, which would amount to $155.99 a year.
Rising shipping costs
Amazon has said that it is raising prices because Prime membership is growing too rapidly. Offering Prime has become more expensive due to increased shipping costs.
Amazon recently revealed that the company has over 100 million Prime members, a statistic that has not been disclosed before. In 2017 Amazon gained more new Prime members than in any previous year, and over five billion items were shipped with Prime.
This price rise will significantly boost Amazon's earnings, which are in a strong position according to recently announced Q1 results.
Read our Amazon strategic outlook report here.