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Amazon hikes up price of Prime to $119 a year

27 April, 2018, 11:25 | Author: Melinda Barton
  • Amazon delivers huge profit surprise, stock surges

Amazon said today (April 26) that the price of Prime, its signature membership program, will jump 20% to $119 from $99 in the US.

Amazon is increasing the price of its Prime membership from $99 to $119 starting on May 11. Current members will switch to the new pricing structure at their time of renewal, from 18 June.

Amazon.com on Thursday reported $51bn in sales for its Q1 2018, an increase of 43 per cent from $35.7bn in the year-ago quarter.

Amazon CEO Jeff Bezos, the reigning richest person in the world, revealed in a letter to shareholders last week that the company has surpassed 100 million Amazon Prime subscribers.

The Seattle-based online retailer's stock, which closed at $1,517.96 on Thursday, soared past $1,620 in extended trading.

Net sales for the period ended March 31, grew to $51.0 billion, from $35.7 billion for the same quarter a year ago. That was writing on the wall for annual subscribers, it turns out, as the company has announced a new price hike brought about by the company's improved features.


Subscription services, which include Amazon's popular Prime offering, generated revenue of $3.1 billion, up 56% from a year earlier.

Amazon's losses from its worldwide business continue to rise largely due to its growing India investments. AWS net sales came to $5.44 billion for the quarter and delivered operating income of $1.4 billion.

Amazon published its first quarter financial results on Thursday, eclipsing market estimates with strong growth in North America and its AWS segment.

"We still think it's the best deal in retail, and we're continuing to make it better each day", Olsavsky said on the earnings call.

Revenue from third-party sellers paying to promote products on Amazon grew 139% to $2.03 billion, which included $560 million from an accounting change.

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