Amazon To Increase The Cost Of Its Prime Services In September

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Amazon Increase Prime Cost For The First Time In 8 Years...

Amazon has announced that it will be increasing the price of its Prime service from this September.

Monthly pricing will increase to £8.99 a month, from £7.99 a month, with its annual price changing to £95, from £79.

Amazon hasn't increased its pricing since 2014, so it's been some time since we've had to pay more for its services, so in theory, we shouldn't complain; however, it's another blow to everyone's bank balance at a time when everyone its having to scale back costs, due to the current cost of living crisis.

It comes at an unfortunate time for subscription services, when price increases from the likes of Netflix and Disney Plus have resulted in mass service cancellations, with some 1.66 Million people having moved away from the subscription services in the 2nd quarter of 2022.

Amazon has blamed increasing inflation for being one of the main reasons for needing to adjust its pricing. The increase in fuel costs hasn't helped the company, and the significant increase in staple items such as cardboard and other packaging materials has only weakened the profitability of the Prime service for Amazon.

Amazon expects to lose subscribers due to the price increase, but the mass subscriber cull faced by other subscription services is less likely, mainly due to the wide range of benefits Amazon offers its subscribers.

The benefits such as unlimited free next-day delivery of its products, the substantial video services included in the subscription, plus grocery services and try before you buy on clothing, mean that it's less likely that people will jump ship; I know that personally, I've saved a small fortune of postage costs alone by using Amazon for a large percentage of my online purchases!

The new charges will kick in this September, or in the case of annual subscribers, when your subscription is due to be renewed (if after September).

It's not an avoidable cost, but if you pay monthly, you could change to an annual subscription before September and benefit from an equivalent saving of £28.88 over the following 12 months; just make sure you do this at the end of August to maximise your savings...