July 26, 2022, 10:40 am | Read time: 5 minutes
Following the adjustment of the terms and conditions, many had already suspected it, and now it’s official: Amazon is raising the prices for Prime membership. The changes will take effect in September.
In mid-June, Amazon announced an “update to the Prime terms and conditions,” which suggested that the price for an Amazon Prime membership might also increase in the future. Now, the price increase for Amazon Prime is official. TECHBOOK reveals what customers will have to pay starting in September.
Overview
Around 30 Percent Price Increase for Amazon Prime
Since 2017, Amazon has been able to keep the costs for Prime membership stable. However, starting in September 2022, the prices will increase significantly. Prime customers previously paid 69 euros per year or 7.99 euros per month, but Amazon will then charge a hefty 89.90 euros annually (about 7.50 euros monthly). This represents an increase of 30 percent. For monthly billing, the costs will rise by one euro to 8.99 euros.
Students will also have to dig deeper into their pockets. Here, the price increase for Amazon Prime is even 32 percent. Instead of the previous 34 euros, the provider will then charge 44.90 euros per year (about 3.74 euros monthly) or 4.99 euros for monthly billing (previously 3.99 euros).
Amazon cites the globally increased costs as the reason for the Prime membership price hike. The high inflation and increased operating costs are particularly challenging for the company. In the U.S., Amazon had already increased costs for this reason in February. Now, many markets within Europe are following suit, with the price increase for Amazon Prime varying significantly in different countries. In the UK, the third-largest market, Amazon is raising prices by about 20 percent–slightly less than in Germany. In Spain, Italy, and France, however, the price increase for Prime averages 39 to 43 percent, which is even higher than in Germany.
As Amazon is currently informing its Prime customers via email, the price increase for Amazon Prime will take effect on September 15. Those whose annual subscription renews before this date are in luck. Prime customers will then benefit from the previous, lower costs for another year.
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Whether the Amazon Prime membership is still worth it after the price increase can be read here:
Amazon Prime Price Increase Unlawful! Is a Refund Possible?
Amazon Increases the Price of its Music Unlimited Subscription
Terms and Conditions Adjustment Heralded Price Increase
The price increase for Amazon Prime does not come as a surprise. There were already indications in June. Subscribers received an email informing them about new terms of service for the service. Although the email contained little concrete information, it included a summary of the changed terms and conditions:
It stated, for example: “We are entitled to change these terms, the Prime service, or parts thereof, as long as these changes are minor or factually justified (…).” There were particularly many highlights in section 5.2 on “Changes to the Membership Fee.” It stated: “We are entitled to adjust the membership fee at our reasonable discretion and based on factually justified and objective criteria.” And further:
“An increase in the membership fee is possible, and a reduction in the membership fee must be made (…), to pass on the cost increases and/or cost savings incurred by us, which are based on external circumstances beyond our control and which affect the specific costs of the Prime service in your country.”
Email from Amazon
The fact that Amazon repeatedly points out the possibility of a price adjustment in its email was noteworthy. The approach was reminiscent of April, when Amazon first informed Prime Music users about new terms and conditions, only to announce the price increase in May. The suspicion was therefore that Amazon might now proceed similarly with its Prime membership. However, the company did not want to comment on this. In response to a TECHBOOK inquiry, an Amazon spokesperson only replied very generally: “We have updated the Amazon Prime terms and conditions to provide more detailed information on how and when we can make changes to these terms, our Prime service, or the conditions for Prime membership.”
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Prime Customers Have Special Termination Rights
Before the current price increase for Amazon Prime, the last change was five years ago. In 2017, the price rose from 49 to 69 euros annually. As mentioned, Amazon Music also recently became more expensive, as did Amazon Kids+ in some cases. The Music price increase was particularly surprising because it primarily affected Prime customers and not subscribers who only paid for music streaming.
To adjust subscription prices upward, a clear legal basis must be present. Amazon established this with the change in terms and conditions in June. Those who do not want to pay the higher costs can cancel their Prime membership within 30 days of receiving the info email. The membership will then continue until the end of the current billing period.
Read also: Amazon must simplify Prime cancellation under EU pressure
However, there are some things to consider when canceling: Those who cancel their Amazon Prime account lose access to all Amazon services, including Music and Prime Video. Linked devices will also no longer have access. Purchased or rented content, such as on Amazon Prime Video or Kindle, will also be gone. Photos and videos stored in the Amazon Photos library should therefore be backed up beforehand.
Source
- Info email from Amazon
- Amazon Terms and Conditions