Because of high operating costs, Amazon will raise the price of its Prime service for customers in the United Kingdom. From September 2022, the monthly subscription price of Amazon Prime will go up 1 pound to 8.99 pounds, and the annual membership will increase from 79 pounds to 95 pounds.
Amazon said the price increase is the company’s first in the United Kingdom since 2014, and was partly due to inflation, which is at a 40-year high. Other services such as Netflix, have also increased their subscription prices, despite signs people are starting to cut back on streaming services.
Although, Amazon Prime offers over its streaming service, and Prime also offers unlimited deliveries of products. Amazon said the new pricing will start from September 2022, and at the next membership renewal date of customer, adding that switching to an annual plan and cancellation of membership was also an option.
This move comes at a time when most households are also looking to cut back on spending, with prices of goods increasing at the fastest speed for 40 years. Natalie Berg, a retail analyst who has written a book regarding how Amazon will shape the future of shopping, said the Prime price hike was not actually a surprise after Amazon put its price for Prime in the United States.
Natalie Berg said Amazon has become so embedded in their daily lives that so many people will accept the increase.