Amazon boosts monthly Prime membership fees by 20 per cent

In this Wednesday, Dec. 20, 2017, file photo, a clerk reaches to a shelf to pick an item for a customer order at the Amazon Prime warehouse, in New York. (AP Photo / Mark Lennihan, File)

NEW YORK -- Amazon is raising the price of its Prime membership monthly plan by nearly 20 per cent. The fee of US$99 for an annual membership will not change, the company said Friday.

The online retailer had added the monthly payment option about two years ago as a way to hook shoppers -- especially during the holiday season -- who wanted faster free shipping, but didn't want to commit to an annual fee. The Seattle-based company does not disclose how many Prime members it has.

Besides free two-day shipping, Prime members get other perks, such as access to Amazon's video and music streaming services.

Starting Friday, new monthly members will pay $12.99 a month, up from $10.99. Qualifying college students will pay $6.49 a month, up from $5.49. Amazon.com Inc. said existing monthly members will start paying the higher fees next month.

Amazon said its $5.99-a-month Prime membership for low-income people who receive government assistance is not affected by the price increase. Amazon launched the discounted Prime membership last year for people who have a valid Electronic Benefits Transfer card.