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Amazon set to increase fees for Amazon Prime

By Dan Wilson January 31, 2014 - 6:40 pm

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.”

  • Dom
    3 years ago

    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.

    • Mark
      3 years ago

      It would be worth getting in touch with the Advertising Standards Authority (asa.org.uk) to get them to investigate.

      If Amazon are advertising 1-day delivery falsely this should stop.

  • Dom
    3 years ago

    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.

    • Peter King
      3 years ago

      Do you have a example of this behaviour, i’ve not been able to replicate it.

      I’ve been a Prime customer for years and there’s no doubt the service has gone down hill, especially for smaller items getting sent out by normal post which would have been sent Special Delivery a few years ago.

      That said its still great value with most items reaching me next day, I’d happily pay a bit more for a return to the good old days though.

    • Mary
      3 years ago

      Dom if that is true that is shocking. I will be testing it out. It would surprise me though because a significant proportion of Amazon’s profit (such as it is) comes from selling Prime. Such a tactic would be easy to discover and the consequences grave. Once word got out (moneysavingexpert, mumsnet, newspapers etc) it would likely blow Prime out of the water.

    • Kyle
      3 years ago

      Isn’t this just because Amazon will usually default to selecting themselves or FBA sellers if you’re a Prime member? You can always downgrade to a non-Prime seller.

      Prime has been on and off for me. I had a run of about 6 months where nothing arrived next day but the last 6 months have been good. Possibly because Amazon have switched to using non-tracked RM services instead of Yodel and other crap.

      However, I’ve had some weird deliveries through Prime recently. 6x small items were sent out in 3 packages of 2 each (presumably to qualify as large letters). A larger order I placed across Amazon and 2 FBA sellers had obviously been picked and packed as 3 separate orders before somebody jammed all 3 jiffy bags inside a single box.

      Combined with “addon items” it seems to me that Amazon is struggling to make postage profitable and are running into the same problems even us small guys have.

    • Mark Harper
      3 years ago

      Great news if Amazon have switched to using non-tracked RM services instead of Yodel (please God, anything but Yodel).

      I have been using Amazon since 2000 and nothing sent via Royal Mail in that time has gone missing or been damaged – and almost nothing has come tracked.

  • Hereford United fan
    3 years ago

    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.

  • MrBill
    3 years ago

    You don’t get any streaming video with the UK version of Prime.

    • Mark
      3 years ago

      Despite Amazon owning Lovefilm, the UK’s largest online movie streaming/rental site.

  • Jason
    3 years ago

    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.

  • Jason
    3 years ago

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

  • David
    3 years ago

    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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