// Amazon Prime fees in the UK could soon rise to over £90 despite record UK sales of £23.6bn
// A 17% rise in its UK membership fee would take it from £79 to £92
Amazon Prime membership fee could soon rise to over £90, despite record UK sales of £23.6 billion.
Amazon had a bumper year in the UK, with sales jumping from £19.6 billion in 2020 to £23.6 billion last year but that won’t halt a rise of at least 17% in the cost of Prime membership, if it follows the lead of Amazon US, says the home delivery expert ParcelHero.
“Although not imminent, we’d be surprised if Amazon didn’t follow suit here in the UK, given the current increase in fuel and energy costs,” said ParcelHero’s head of consumer research, David Jinks.
READ MORE:
- Amazon becomes the biggest advertiser in history after spending $16.9bn last year
- Why is Amazon raising the price of Prime and does it need to?
In its Christmas quarter, Amazon posted a 9% rise in global net sales of just over £101.1 billion.
However, that hasn’t stopped it from bumping up its subscription fee for American customers by 17%, taking it from $119, or £88, to £139, close to £103.
A similar 17% rise in its UK membership fee would take it from £79 to £92, Amazon UK currently has around 15 million subscribers.
“Of course, Amazon likes the psychology of rounding off its fees with a number 9 (hence the US rise from $119 to $139). Retailers call this strategy “charm pricing”,” said Jinks.
“Researchers at MIT have found that prices ending in 9 create increased customer demand for products. This psychological phenomenon is driven by the fact that we read from left to right, so when we encounter a new price at £1.99, we see the 1 first and perceive the price to be closer to £1 than it is to £2.
“With that in mind, Amazon might just settle for a 12.6% rise to £89, or go for a hefty 25% rise to £99. That might have a few previously loyal customers thinking twice.”
An amazon spokesperson told City AM: “The price change only applies to the US. We keep this under constant review, but have nothing to announce at this time.”
“Our top tip for anyone thinking of joining the 53% of UK households who are already Prime members, is to sign up within the next few months to beat any potential rise,” the spokesperson added.
For the current £79 fee UK subscribers get free deliveries on most items and Unlimited One-Day Delivery, Same-Day Delivery, and 2-Hour Delivery, Prime video.
Subscribers also get access to same-day grocery delivery in many urban areas, via Amazon Fresh and Morrisons, Amazon Music alongside other perks, including access to Amazon Prime Day deals.
Click here to sign up to Retail Gazette‘s free daily email newsletter
