A contractor working for Amazon.com cleans a delivery truck in Richmond, California, Tuesday, October 13, 2020.
David Paul Morris | Bloomberg | Getty Images
Amazon is raising prices for its Prime subscription service in the UK and across Europe as the e-commerce giant grapples with the impact of rising inflation.
In the UK, Amazon will increase the annual price of a Prime membership from £79 to £95, a 20% increase. The changes will take effect on September 15.
The company pushes through even stronger price increases on the European markets.
In France, the price of an annual Prime membership increases from €49 to €69.90, an increase of 43%. German Prime members can expect a 30 percent increase in their annual Prime price from €69 to €89.90.
The move follows similar price increases announced by Amazon in the US. In February, Amazon announced it would increase the price of its annual Prime membership for Americans from $119 to $139, the first such increase in its discounted loyalty program in the United States since 2018.
Amazon attributed the price hikes to “increased inflation and operating costs” as well as increased expenses related to faster delivery and production of content for its Prime Video streaming service, Reuters reported. The company is expected to announce second-quarter results on Thursday.
Amazon CEO Andy Jassy has grappled with the twin challenges of high costs and flagging e-commerce sales. Last quarter, Amazon acknowledged that the pandemic boom had caught up and had too many workers and too much storage capacity. The company has relocated to shed some of that storage space and recently halted construction of office buildings in Nashville and Bellevue, a suburb of Seattle, according to The Wall Street Journal.
Amazon has previously said it has been working to avoid passing costs from inflation, the Covid-19 pandemic and other macroeconomic challenges on to consumers. In April, amid rising costs, the company added a 5% fuel and inflation surcharge to the fees it charges sellers using its fulfillment services.
Amazon isn’t the only company raising its prices. Disney increased the price of its sports streaming service ESPN+ earlier this month. And earlier this year, Netflix raised prices in several markets.
CLOCK: It’s all or nothing for Amazon this Prime Day, says Walmart’s former US CEO
https://www.cnbc.com/2022/07/26/amazon-prime-membership-prices-increased-in-europe-as-inflation-bites.html Amazon Prime membership prices rose in Europe as inflation hit