Amazon hikes Prime fee to $119

Amazon announced a 20% price increase in its annual Amazon Prime fee, from $99 to $119, beginning May 11 for new customers. Existing customers renewing will begin paying the higher fee in June, the company said on its quarterly earnings call.

Why it matters: Last week Amazon announced it had more than 100 million Prime members globally, so the price increase could bring in around $2 billion in additional annual revenue.

Amazon also raised the Prime fee for monthly customers from $10.99 to $12.99 in January.