Amazon to Raise Prime Fees in Europe, Cites Rising Costs
Mazon will raise its Prime Fees in Europe. This was announced by the company to customers Tuesday just days before its second quarter earnings report.
The company sent notice to customers stating that the monthly Prime membership price will rise from 7.99 to 8.99 pounds in the United Kingdom, and the annual cost from 79 to 95 pounds ($114.26).
Spain’s monthly cost will rise by one Euro to 4.99 and will increase almost 14 euro per year to 49.90 ($50.54).
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Sign-ups for Prime and renewals of memberships will see the charges increase effective September 15, 2012.
The annual price of a German or French house will rise by 30% and 42%, respectively to almost 90 euros and 70 euros, respectively. It will rise by 38% to 49.90 Euros in Italy.
This is because the company wants to boost its profits in spite of a slowdown. Consumers who were once homebound during the COVID-19 pandemic have pulled back from online shopping, and the retail sector’s online sales growth has slowed. Inflation is also a major problem for the Seattle-based giant of e-commerce. It is currently at its highest level in over 40 years.
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The notice was sent out to Spanish customers. It cited inflation as the reason. Amazon spokesmen said that shipping costs are increasing is another reason.
Amazon sellers have also been affected by inflation pressures. In April, the company added a 5% “fuel and inflation surcharge” to fees it charges third-party merchants to offset rising costs.
Amazon raised the price for Prime Memberships in America to $139 per annum from $119 per annum earlier this year.
Besides free two-day shipping, Prime members get other perks, like access to Amazon’s Prime Video and music streaming services. According to the notice sent to customers, it also said that the company has increased the range of products it offers members. This includes adding additional content for Prime Video. Similar reasoning was used by Disney to justify a price increase on ESPN+’s streaming service. It will go into effect next month.
Amazon will announce its most recent quarter’s earnings Thursday.
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