Amazon notified Australian Prime members by email on Wednesday that the annual subscription will rise from $79 to $99. The company said the price change was needed to "continue supporting" the services included with Prime, and that all other parts of the membership will remain unchanged.
"The range of products and benefits available through Prime has continued to grow," the email said, pointing to free fast delivery, Prime Video, Amazon Music Prime, Prime Reading, games with Amazon Luna and events such as Prime Day.
An Amazon spokesperson told 7NEWS.com.au that the increase reflects the expansion of Prime benefits in Australia. "Prime members in Australia love the combined value Prime gives them, including shopping, delivery, savings, deals and entertainment benefits in a single membership," the spokesperson said.
The spokesperson cited recent additions including free overnight delivery before 8am in four cities, expanded same-day delivery in nine regions, new Prime Video shows and live sport, and free access to Alexa+.
The price rise follows a June lawsuit by the Australian Competition and Consumer Commission (ACCC), which alleges Amazon relied on unfair contract terms when it introduced ads to Prime Video in July 2024. The ACCC said contracts with more than a million Prime subscribers contained five allegedly unfair terms, and that Prime Video had previously been almost entirely ad-free.
Amazon also announced large job cuts earlier this year. In January, senior vice president Beth Galetti said the company would cut about 16,000 roles worldwide, a second major round after around 14,000 cuts in October.