After increasing the price of Prime in the USA, Amazon also increased its prices for the European region as well. This comes after mounting pressure on Andy Jassy from Wall Street. Right now, a downturn in the economy is showing up along with a rise in inflation - Both of these factors can be attributed to this price increase.
After the USA, the 2nd biggest market for Amazon is Germany which will witness an almost 30% increase in the annual price of Prime membership. After the recent increase, the final price will be around $91.99 or 89.90 euros. If we look at the United Kingdom, Amazon Prime's users will face a 20% increase in prices.
The Amazon website operating in France, Italy, and Spain will witness a price increase of 39% to 43% for the yearly plan.
According to Amazon, the changes in the subscription prices will be live from the 15th of September and will be applicable to both new and existing users.
High Inflation & Operating Costs
According to Amazon, high operating costs and inflation is the main reason behind the price hike. Furthermore, Amazon's commitment to more streaming content and faster deliveries also warrants a price hike.
This is the first time since 2018, when the price was last increased by Amazon prime. However, Amazon Prime has ensured its users that it will continue to provide exceptional value for their money.
During the month of April, Amazon company reported its first-ever quarterly loss during a 7 years period. The reason for this loss was attributed to higher wages, inflation, and rising gas prices. However, the biggest culprit behind this quarterly loss is due to the company's stake in RIVN.O (Rivian Automotive Inc).
Despite facing losses in the Rivian, Amazon is committed that it will remain an important partner for the company. Through the Rivian company, Amazon plans to put electric-powered delivery vans for use in the USA in the year 2022.