Amazon hikes Prime subscription in five European countries

Amazon Prime customers in five European countries learned on Tuesday that they face double-digit price increases for the platform’s expedited delivery service.

Amazon said the rises were due to increased operating costs as fuel prices have jumped higher.

Beginning in mid-September, customers in France will have to pay 43 per cent more for an annual subscription. Italians face a 38.6-per cent hike, Spaniards 30.3 per cent, and Britons and Germans 20 per cent.

The rises take the price of Prime, which in addition to rapid delivery includes access to its Prime Video service, to €49.90 in Italy and Spain. It will be €89.90 in France and Germany, and £95 (around €112) in Britain.

That leaves the service less costly than in the United States, where it rose by 17 per cent in February to US$139 per year (€137).

While the price hikes are much higher than inflation, analysts believe that the service costs Amazon much more than it charges and is used to lure and keep customers.

Market intelligence firm Foxintelligence estimated last year that European members of Prime bought on average twice as much on Amazon than non-members.

A handful of angry customers announced their intention to cancel the service on Twitter.

However, Amazon representatives in France were unfazed.

“What we could see in the United States was there wasn’t an opt-out surge because more and more services are offered via Prime and it still allows consumers to realise very considerable savings,” said the firm.