JP Morgan: It is expected that Amazon.com, Inc. (AMZN.US) will raise Prime membership fees, with the potential to generate billions of dollars in revenue next year.

Amazon.com, Inc. (AMZN.US) has not officially announced its plan to increase the price of its "Prime" membership service in 2025, but analysts are still speculating that the e-commerce giant will raise prices again within the next year. This expectation is based on factors such as rising transportation and delivery costs, as well as the expansion of the "Prime" service offerings (including streaming and exclusive content). Another factor is that consumers may realize that the annual $139 Amazon.com, Inc. Prime membership fee is actually quite a good value. A study by Morgan Stanley analyst Doug Anmuth suggests that when breaking down all the components of the membership service, the estimated value of the service package is $1,430 per year, more than double the estimate of $544 in 2016. This analysis does not take into account Amazon.com, Inc.'s history of providing services at its fastest pace ever. Morgan Stanley believes that Amazon.com, Inc. may increase the price of Prime membership services in 2026, which aligns with the company's practice of raising prices about every 4 years. Importantly, the company expects that even if they raise the subscription price to $159, there will not be a significant loss of users or a major impact on the addition of new Prime members. Increasing the price of the U.S. Prime membership service by $20 is estimated to generate approximately $3 billion in additional net sales annually. Of course, if prices are raised internationally, the growth in sales revenue will be even higher. When Prime was launched in 2005, the annual membership fee was $79. This price remained until 2014, when it increased to $99. Four years later, in 2018, the fee rose again to $119, and in 2022, it rose once more to $139. Julian Lin, an analyst at the investment team Best Of Breed Growth Stocks, also expects the company to raise the price of the Prime product. He said, "I personally hope they don't raise prices, not only because I want to purchase it myself, but also because it could potentially continue to expand market share." Amazon.com, Inc.'s decision on pricing for Prime services may impact many companies, including Walmart Inc. (WMT.US), Costco (COST.US), Target Corporation (TGT.US), Netflix (NFLX.US), and Best Buy Co., Inc. (BBY.US).