The disclosure of the increased Prime membership cost came as Amazon released spectacular results for the first quarter, with overall sales jumping 43%. A significant portion of that was driven by demand for Amazon's cloud services, but product sales registered a very strong 33% gain.
Notably, the company also delivered strong profits (not always a focus for the growth-oriented enterprise), and while Amazon has shown no fear of doubling down on investing in its ecommerce operations, it's interesting that it lifted the Amazon Prime fee amidst such strong growth and profitability.
Amazon said it made $9.7 billion from subscription services, working out to about 5% of total sales. That figure is not exclusively Prime membership fees, as it includes sales from Amazon's Kindle Unlimited, Music Unlimited service and others, though.
The rising costs of providing the service were cited as a factor in the price change. The company pointed up faster shipping speeds and the wider range of eligible items. "It's much different that in was in 2014," said Amazon CFO Brian Olsavsky on a call with analysts.
In March, Amazon introduced grocery delivery from Whole Foods Market in 10 US cities with the Prime Now free two-hour delivery window. There was no word when or if this will expand to more cities.