Amazon set to increase fees for Amazon Prime

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Amazon is expected to raise Amazon Prime fees something like $20-$40, it was announced. Currently, Amazon Prime costs $79 and includes free 2-day shipping, Amazon Prime Instant Video, and Kindle Lending Library. In the UK it’s £49 per year.

It was as part of a conference call reporting Amazon’s results, the fee rise was revealed. These fees apply to shoppers in the US but it would seem likely that Amazon would follow suit for UK customers.

Amazon CFO Tom Szkutak said to analysts: “We launched Prime in the U.S. nine years ago with free, unlimited two-day shipping on one million items in an annual membership price of $79. Today Prime selection has grown to over 19 million items. Even as fuel and transportation cost have increased, the $79 price has remained the same. We know that customers love Prime as their usage of the shipping benefit has increased dramatically since launch. On a per customer basis, Prime members are ordering more items across more categories with free two-day shipping than ever before. With the increased cost of fuel and transportation as well as the increased usage among Prime members we’re considering increasing the price of Prime between $20 to $40 in the U.S.”

13 Responses

  1. UK Amazon Prime is supposed to be free next day delivery but since signing up I have yet to have an order actually delivered on time. The estimate always shows the day following purchase but delivery normally takes at least two days.

  2. Also try searching for a product on Amazon not signed in as a Prime member, then in a different browser sign in to Amazon and search for the same product, often the price displayed is higher for Prime members. The trick is to add to your basket then sign in.

  3. I got a huge amount of queries about late delivery over Christmas from expedited delivery customers. I also got loads of negative feedback. It does get struck through but the quantity was amazing.

    I suspect amazon have done a lot of damage to their reputation this year.

  4. I would like Amazon to look at what they are offering before hiking the prices. I signed up for ‘Amazon Prime’ and I don’t usually (i.e. more than half the time) get it within the stated time. Also I thought I was going to get access to some free films/movies, but apparently not.

    Not yet had anything ‘Prime’ sent via the wretched Yodel – and if Prime means “Yodel-free” well worth the money and more.

  5. Not yet had anything ‘Amazon Prime’ sent via Yodel. If Prime means “Yodel-free” then well worth the current money and more!

  6. Amazon’s attempt to mask a massive price hike with pseudo benefits has failed to fool me. As (a) I have no interest in accessing streamed content and (b) I live in a rural area with broadband speeds that could not support it anyway, I have cancelled the automatic renewal of my Prime service.

    If enough people take this action, maybe Amazon will rethink its Prime strategy.

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