Amazon will increase the price of its monthly subscription service by 12.5% - or £1 – to £8.99 from September in the latest sign that delivery costs are rising.
The company said the price of its annual Prime package, which includes unlimited delivery for online shopping, access to video and music streaming services and delivery of Amazon consumer goods, will rise. and more – 20%, or £16 – to £95, although this reduces the discount on the monthly option.
Amazon said the increase in fees, which will be implemented when members’ contracts come up for renewal from September 15, is the first since 2014 and comes after some improvements in the Prime service.
“We’ve increased the number of products available with Prime Unlimited delivery, recently added new fast food options, and expanded our digital entertainment portfolio, including TV, movies, music, games, and books. ,” said the spokesperson. he said.
They added that Prime has tripled the amount of original content on Amazon since 2018, with series including The Boys and The Terminal List, as well as UK-produced shows like Clarkson’s Farm and Backstage Together and Katherine Ryan. The service has also added access to Premier League football and Autumn Nations Rugby in the UK and will launch The Lord of the Rings: The Rings of Power series in September.
Half of all UK consumers over the age of 16 – or around 27 million people – are expected to have access to Prime as the service grows rapidly during the crisis, when high street retailers have been forced to close their stores. a long time.
More than a third of Britons over 16, around 19 million people, are estimated to be single members, up from 31% or 15 million in 2019, according to market research firm Mintel. Membership is peaking among young users, with almost two-thirds (64%) of 16-34s now accessing the service.
Prime Delivery is the most used service, but the video streaming service has grown rapidly during the crisis, with 62% of members using it regularly in 2020, according to Mintel. In contrast, only 7% have used the Amazon Fresh grocery delivery service.
The rise in prices comes as online retailers and streaming services look for ways to balance inflation in delivery costs and problems with handling returned goods.
In March, Netflix said it was increasing the price of its basic and standard plans by £1 a month to £6.99 and £10.99 respectively, while the premium tier would rise by £2 to £15.99. Apple Music is also increasing the price of its student plan by £1 to £5.99, while the price of Disney + has risen by £2 a month to £7.99.
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Prices have soared despite evidence of declining demand for streaming services as households look for ways to cut costs and get some entertainment now that the virus restrictions are over.
Fast-track group Boohoo, which owns online brands including Debenhams, Dorothy Perkins, Oasis, Wallis and Burton, became the latest online retailer to start charging shoppers for returns earlier this month with a £1.99 fee.
Zara, Sports Direct and Next are also now accepting returns for items bought online as the cost of cleaning, checking and repacking, and delivery have skyrocketed.
