Amazon Japan Raises Prime Membership Price for First Time in 11 Years
Fees for monthly users will go up by 100 yen to 500 yen per month.
(Bloomberg) -- Amazon.com Inc. is raising the price of its Prime service in Japan for the first time since launching the membership service in the country 11 years ago, citing rising costs.
The annual price for the shipping, video-streaming and array of other services will go up by 26 percent to 4,900 yen ($44) starting from Friday, the Seattle-based company said in a statement Friday. Fees for monthly users will go up by 100 yen to 500 yen per month.
Prime membership prices differ by country, and the cost in Japan still pales in comparison to the U.S., where the annual fee is $119.
Amazon has built Japan into one of its biggest overseas markets even as the government estimates e-commerce penetration at less than 6 percent and the aging population remains wary of shopping online. In the past five years, the company has bolstered its offerings in the country, rolling out services such as music, video, Amazon Fresh and Prime Wardrobe.
Amazon follows a slew of other companies in Japan that have raised prices on goods such as ice cream and cup ramen and bottled drinks, all citing increased costs for logistics and personnel in one of the tightest labor markets the country has seen. Japanese parcel carrier giant Yamato Holdings Co. said in 2017 it would negotiate higher prices with business customers, including Amazon, as increase in demand for its delivery services took a toll on its workers.
To contact the reporter on this story: Lisa Du in Tokyo at ldu31@bloomberg.net
To contact the editors responsible for this story: Rachel Chang at wchang98@bloomberg.net, Robert Fenner, Reed Stevenson
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