Amazon is raising the cost of its Prime service for customers in the UK and across Europe due to higher operating costs.
In the UK, the monthly subscriptions will increase by 12.5% – or £1 – to £8.99 from September, while annual membership will rise by 20% – or £16 – to £95.
Shoppers in Germany, Amazon’s second-biggest market after the US, will see fees for an annual Prime membership rise 30% to €89.90, while Amazon sites covering Spain, Italy and France will charge members between 39% and 43% more yearly.
Amazon stated the price rise, its first in the UK since 2014, was partly due to inflation, which is at a 40-year high. Like other retailers, the online giant is facing increased delivery and staff costs.
Amazon announced an increase in Prime charges in the US in February amid mounting pressure from Wall Street on new Chief Executive Andy Jassy to shore up profits as demand for its services weakens following a boom during the pandemic.
Amazon stressed today that Prime customers were benefitting from a series of improvements in its service.
“We have increased the number of products available with fast unlimited Prime delivery, recently added ultra-fast fresh grocery delivery, and have significantly expanded our high-quality digital entertainment, including TV, movies, music, games, and books,” a spokesperson said.
More than a third of UK over-16s, about 19 million people, are estimated to be individual members, up from 31% or 15 million in 2019, according to the market research firm Mintel. Prime membership peaks among younger consumers, with almost two-thirds (64%) of 16-34s now having access to the service.
