Amazon Is Raising the Price of Prime to $139, Here's Why

Transportation and content costs are rising, so it's not surprising that Amazon (NASDAQ: AMZN), one of e-commerce's highest-volume shippers, will raise the annual fee for its Prime service from $119 to $139 (and to $14.99 for monthly subscribers). This will go into effect starting Feb. 18 for new members with existing members getting a pass until March 25. This marks the first price increase since 2018.

Customers won't like it, but there are good reasons why it makes sense for Amazon, and long-term investors should take note of what this signifies about Amazon's brand strength.

Image source: Getty Images.

Source Fool.com