The price of Amazon Prime will rise in the United States to offset the company’s higher costs in wages and shipping, the e-commerce giant announced in its quarterly earnings release. Will it go up in the rest of the world? We are afraid so.
Amazon’s financial results rose sharply in off-market trading. No less than 12% after beating investor expectations with pre-tax profits of $11.8 billion.
The confinements due to the COVID pandemic have led to an increase in income and profit for most technology companies. Online shopping skyrocketed and e-commerce leader Amazon made a windfall from soaring purchases. However, it also had to invest to meet increased shipments, pay bonuses and raises, and deal with supply chain issues.
Increase the price of Amazon Prime
The subscription fee for the service in the United States last rose four years ago, from $99 to $119. Now, Amazon will increase the monthly and annual fee starting February 18 for new users as follows:
- Monthly: $12.99 to $14.99
- Annual: from 119 to 139 dollars
In Spain, the price is much lower, although it also offers fewer services. Their goal is the same, retain customers and attract new users. Being honest, for 36 euros per year It is a real “bargain”.
With the subscription we have fast and free shipping for thousands of products; access to movies and series on Prime Video; choice of collection point; free unlimited photo storage in Prime Photo; discounts for pre-ordering video games and other benefits on the Twitch service; access to thousands of music tracks on Prime Music; to discounts on additional content purchases and access to Prime Day deals, the best that the company offers throughout the year.
Will the price of Amazon Prime go up in other countries? We fear that it will. The United States is where it offers the highest level of service, offers, shipments and entertainment services, but it must be recognized that the price of the subscription in Spain is very tight and the increase in labor and logistics costs has also occurred here. We will see.
