Share Price of Amazon Opens Higher Following Increases in Prime Membership Costs

Customers of Amazon Prime in the United States will now have to pay $12.99 (£9.37) per month for the service after the tech company increased the prices from $10.99.

The shares in the tech giant opened up by over one percent.

Students members are also set to face a monthly price increase of one dollar to $6.49.

However, users who opt to pay up-front annual fees for the service still have to pay $99 for the standard membership and $49 for students.

The streaming service and fast-delivery is a core part of the business of Amazon. The company has already invested in programming for Prime Video as a rival to the likes of Netflix in order to draw in more customers to sign up.

Customers receive free two-day delivery and discounted next-day options.

In the United Kingdom, this has caused problems in the run-up to the Christmas season as some customers complained that deliveries had been delayed.

Yesterday, Amazon announced that it will build a second headquarters in the United States, with 20 cities currently included on the shortlist of the company.

Read more: Amazon has Shortlisted 20 Cities for Comapany’s New HQ2