The website founded by Martin Lewis, Money Saving Expert (MSE), has issued an urgent two-day warning to anybody who has an Amazon Prime account. It comes after Martin sent out a warning message last month.
The MSE site says people with Amazon Prime need to act fast if they don't want to end up paying more than they have to. Last month, Amazon Prime confirmed it would be hiking prices for all customers.
From September, the monthly membership price increases from £7.99 to £8.99, and annual membership from £79 to £95."
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The new rates will kick in from September 15 for new customers, or on the date of your next renewal. In a post on the MoneySavingExpert website, Martin explained how this date is crucial for those who want to keep Amazon Prime.
As the online shopping giant won’t take payment until your current month's subscription has finished, you have until 11.59pm on Sunday, August 14, to lock in a lower price on a yearly package. This applies to Amazon Prime customers who pay monthly and who can afford to fork out £79 on a yearly deal.
You won't be able to carry on at the lower monthly cost. The warning from Martin was published last month but was flagged again in this week's MoneySavingExpert newsletter.
“If you currently pay monthly and you want to keep it, then the best thing you can do – provided you can afford it – is to convert now to the annual package and then you lock in at £79 for the next year, forestalling the rise,” said Martin. For annual subscribers, Martin explained that you need to contact the Amazon customer service team before September 15.
You should ask them to “end benefits immediately” and then sign up again to lock in the current price. If not, your membership would run until the renewal date even if you cancelled, taking the new payment until after that date, says the Mirror.
You should note that, even by using these tips, you would only put off the price rise by one year. Amazon said the price hike is due to "increased inflation and operating costs". It is the first time its Prime service has gone up since 2014 - but it comes as families continue to struggle against the cost of living crisis.
More than 1.5 million people cancelled a streaming service in the first couple of months of 2022 as they look to save cash, according to market research firm Kantar. You can cancel Amazon Prime for free, if you don’t make enough use of its services.
Take a look and see if you actually make use of Amazon Prime - or if someone in your household already pays for the subscription. If you do think you can do without Amazon and you'd like to cancel your subscription, you might be eligible for a full refund if you haven't used any Prime services.
Those who are part-way through their deal and who have used Amazon Prime for delivery only might be able to get a partial refund. Amazon Prime offers free next-day delivery on thousands of items, along with TV and movie streaming and live sport events.
However, not all its content is free. You have to pay to rent some shows and films - meaning an extra cost on top of your monthly or annual fee. Paying annually rather than monthly is cheaper, if you're set on keeping Prime.
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