has increased the price of Prime to $99

Posted Mar 13, 2014 is increasing the price of Amazon Prime from $79 to $99 per year. The student version of Prime is increasing to $49. The new price will go into effect on March 20th. Beyond April 17th, existing Prime members that renew their subscription will have to pay the $99 price. New customers that start a free trial between now and March 20th will get the $79 rate for the first year.

Amazon Prime is an annual subscription service that offers free two-day shipping and access to Amazon Instant Video with access to over 40,000 movies and TV episodes. There are over 500,000 books that can be borrowed through Kindle Owners’ Lending Library.

Amazon indicated that there would be an increase for Prime in January during the Q4 earnings call. The reason for the price increase is believed to be due to an increase in shipping costs. Amazon’s shipping costs increased 19% to $1.21 billion.

The price of Amazon’s Prime Fresh grocery delivery will continue to cost around $299 per year.

[Source: USA Today]