Amazon announced that it would increase the Prime service's monthly subscription fee in the next two months. The price will skyrocket up to 43% in just a year across European countries.
Amazon Prime Subscription Increase in Europe
According to a story from The Verge, Amazon is adjusting the current price of the Prime subscription starting Sept. 15. For instance, the service fee will increase from £79 to £95, which is a 20% hike.
In France, the subscription cost is expected to shoot up by 43%. From a monthly fee of €49, it will soon become €69.90.
Meanwhile, both Italy and Spain will have a 39% increase in the annual cost whereas Germany will have a 30% surge in the fee.
Before the e-commerce giant implemented the price increase in the Amazon Prime subscription, the company first made it effective in the US, where the previous annual fee of $119 was adjusted to $139.
It should be noted that the firm will continue to increase the monthly price by €1 across Europe. Having said that, discounts are out of the picture regarding the adjustments.
So far, this is the first time that Amazon has expanded the service price in the UK since 2014. The big change might have an impact on British households which have Prime subscriptions. This population accounts for over 50%.
"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 company spokesperson said.
Related Article : Amazon Prime Membership Price Hike To Affect Canadian Subscribers But Vows to Improve the Service
Why Does Amazon Increase the Prime Subscription Cost?
In another report by The Guardian on Tuesday, July 26, the use of subscription services, particularly Prime, has boomed during the start of the COVID-19 pandemic.
Since many people are forced to stay inside their houses, all they can do is rely on in-home entertainment services from televisions and smart gadgets.
According to Reuters, Amazon has chosen to adjust the Prime subscription price because of the "increased inflation and operating costs."
For the last seven years, Amazon has experienced a huge Q1 loss last time. The event hugely affected the company's operation, including the transportation and fuel costs and more.
Moreover, several online retailers are looking for ways to cope with the economic problem.
To make sure that they will still earn despite the inflation, they tend to put additional fees on the part of customers through extra delivery costs.
Earlier this month, Tech Times reported that Amazon Prime subscribers can now get a free Grubhub subscription for one year. This is a perfect bonus for those who frequently order food online.
This article is owned by Tech Times
Written by Joseph Henry
