Amazon increases Prime prices for the first time since 2014
With more benefits included in Prime, Amazon has decided to up the price for monthly, annual, and student plans.
Everyone’s heard of Prime. It’s Amazon‘s subscription option that gets you free next-day delivery, TV, music, and more. While the price has sat firm since 2014, the US saw a price jump earlier this year. And now Amazon is bringing a similar price hike to UK customers.
From 15 September, the monthly subscription for Prime will increase by £1 from £7.99 to £8.99. Yearly customers will see a £16 jump from £79 to £95. Even the student tier is increasing by £1 as well, from £3.99 to £4.99.
Arguably the biggest hit comes to yearly subscribers. With the old pricing, paying for the year upfront saved you roughly two months in the fee. Now, you’re only looking at a saving of around 1 month. The student plan is also a little different. Since it increased by £1 instead of 50p, it’s no longer half the price of a usual subscription– rather, it’s 45% off. Some of Amazon’s choices seem a little curious.
There are a few different reasons Amazon is citing for the change in subscription prices. In emails to customers, the retail giant cited all the new features in Prime since 2014 for the increase, such as more Prime delivery availability, Amazon Fresh, and better entertainment. And in a statement to the Financial Times, an Amazon spokesperson put it down to the current inflation and increased operating costs. It seems there are a couple of different factors at play here.
It’s worth acknowledging that this is Prime’s first price hike in eight years, when other subscriptions have jumped up more regularly. But during global inflation where customers are looking to cut subscriptions, Amazon might upset a few customers.
Meanwhile, if you’re looking to lock in the current price, you can take out an annual subscription for the current £79 before 15 September. You won’t see a price increase until next year, but you’ll need to pay for the full year at once.