The cost of an Amazon Prime subscription rose by 16% in the US back in February, but those of us in Europe continued to pay the same rate. That seemed unlikely to last, and indeed the company has today notified European customers of some steep increases in the cost …
Reuters reports that the increases for European customers are significantly higher, ranging between 20% and 43%.
Amazon will raise fees for its delivery and streaming service Prime in Europe by up to 43% a year, the online retailer said on Monday, as it moves to counter higher costs days before it reports quarterly financial results.
The price hike, following one that Amazon announced for Prime in the United States in February, reflects mounting pressure from Wall Street on new Chief Executive Andy Jassy to shore up profit as inflation rises and a downturn looms.
Shoppers in Germany, Amazon’s second-biggest market after the United States, will see fees for an annual Prime membership rise 30% to 89.90 euros ($91.88). The retailer’s No. 3 market, the United Kingdom, will have a 20% increase to 95 pounds ($114.47) per year, while Amazon sites covering Spain, Italy and France will charge Prime members between 39% and 43% more yearly.
It follows Amazon posting its first quarterly loss for seven years, with rising gas prices in particular impacting on delivery costs.
Amazon has also taken a hit on its move into electric delivery vehicles. The company took a stake in Rivian back in 2019, partnering with the company in the development of a custom electric van. We first saw the result in 2020, with the fleet rolling out the following year, starting in LA.
Unfortunately, that investment proved to be a big financial mistake, with the company seeing the value of its shares fall by more than $4B.
When the US price rise was announced, Amazon cited a mix of improvements to the service, and rising costs.
With the continued expansion of Prime member benefits as well as the rise in wages and transportation costs, Amazon will increase the price of a Prime membership in the U.S., with the monthly fee going from $12.99 to $14.99, and the annual membership from $119 to $139. This is the first time Amazon has raised the price of Prime since 2018.
In an email sent to UK customers, Amazon opted to focus on the positives of what you get with an Amazon Prime subscription.
As of 15 September 2022, the price of the monthly Prime membership will increase from £7.99 to £8.99, and the price of the annual Prime membership will increase from £79 to £95. The new price will apply to renewals starting 15 September 2022. You can view your next renewal date, manage, or cancel your membership by visiting your account.
We continue to focus on making Prime even more valuable for members. This is the first time we have changed the price of Prime in the UK since 2014. During this time, we have significantly increased the number of products available with unlimited, fast Prime delivery; added and expanded ultra-fast fresh grocery delivery; and added more high-quality digital entertainment, including TV, movies, music, games, and books. Prime Video in particular has increased the number of TV series and movies on offer, including Amazon Originals, as well as live sports coverage, such as the Premier League and Autumn Nations Series.
If you have an annual Amazon Prime subscription, the cost increase will apply as of the renewal date.
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