Amazon raises monthly Prime membership fees by 20 percent

Amazon Prime

If you pay for Amazon Prime on a monthly basis, be prepared to spend a little more: the fee is increasing from $10.99 to $12.99 ($156 a year). The fee of $99 for an annual membership will not change, the company said Friday.

Amazon first announced the monthly payment option less than two years ago. The prime membership is being offered in 16 countries so far, with around 90 million customers in the United States (not confirmed).

The online retailer announced Friday that starting immediately, new customers would be charged $12.99 United States a month, up from $10.99 USA previously.

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Amazon Prime is about to get more expensive for anyone with a monthly subscription.

Amazon doesn't disclose how many Prime members it has, but it has had success with the program because Prime members tend to buy more things on the site, more often, because shipping is quick and affordable.

Apart from increasing its monthly membership fees, Amazon has increased the price of its monthly student plan from to $6.49. Amazon has been focusing on motivating prime membership among its customers.

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