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Amazon has increased the price of Amazon Japan’s Prime membership.
Amazon Prime was launched in Japan 11 years ago and the 3,900 yen cost has remained unchanged up until now. Amazon has increased the cost to 4,900 yen (US$44), a 26% increase. The company cited the growing number of services available to members. In recent years, Amazon has improved its offering in Japan, including adding services such as Amazon Fresh, Prime Wardrobe, music and video. Whilst the cost of Prime membership has increased, the price is still lower in comparison to the US, where the annual cost is US$119.
Amazon’s annual report shows that the retailer’s international business saw a loss of US$2.1bn in 2018. The move by Amazon to increase its Prime subscription fee in Japan highlights the company is increasingly prioritising profitability. In April 2018, Amazon increased the Prime membership fee in the US by 20%. In addition to increasing the cost of Prime, Amazon is also looking to improve profitability through the expansion of private label; creating a more efficient supply chain, for example, working with vendors to develop Frustration Free Packaging (FPP) and growing its Amazon Advertising business.