Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Edinburgh Live
Edinburgh Live
National
Neil Shaw & Sophie Buchan

Amazon Prime membership could rise for first time in four years after US price hike

In recent weeks, many people have been thinking about price hikes in their energy bills and their food shop.

However now more bills could rise if you have a Prime account.

Amazon's profits in the fourth quarter are said to have nearly doubled despite the surging costs associated with supply chain issues and labour shortages.

READ MORE - Edinburgh restaurant hits back on TripAdvisor at furious customer turned away over 'dress code'

However shares of Amazon rose nearly 17 per cent in after-market trading as reported by WalesOnline.

The online giant who based in Seattle recently raised its annual Prime membership fee to $139 - the equivalent to £102 per year from $119 (£88).

The move makes it the first price increase the company has had for around four years since 2018.

At present, the cost of a Prime member ship in the UK is £79 per year - or £7.99 per month taking the total cost to £95.88 for the year.

Jeff Bezos is now executive chairman and replaced by CEO Andrew Jassy.

It's CEO said: "As expected over the holidays, we saw higher costs driven by labour supply shortages and inflationary pressures, and these issues persisted into the first quarter due to omicron.

"Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic."

During the beginning of the pandemic, non-essential stores closed in a bid to reduce its transmission - and it didn't just happen in the UK.

As a result, many people turned online for their shopping resulting in rowing sales for online retailers. However as restrictions ease, this growth has slowed down.

Despite the company reporting a profit of $14.32 billion (£10.53 billion) for the three-month period ending on December 31 2021, the companies chief financial officer Brian Olsavsky estimated Amazon incurred around $4 billion in costs related to supply chain and labour issues.

In addition, the surge of the latest covid variant, omicron, added to issues - with workers called in sick hurting productivity.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.