US shoppers who have been locked out of discount shopping on Amazon have now found themselves in a bind, with the online retailer saying it has decided to lower the prices of items sold in its stores by up to 35% over the next two weeks.
In a blog post on Wednesday, Amazon said it will raise prices for some items sold on its online store by up a whopping 55% on Thursday, including the popular AmazonFresh service and its new Prime Air program, which allows customers to rent out their rooms and pay as little as $50 per night.
The company also announced it would increase the price of some Prime membership offers, which are now priced at $99 a year.
AmazonFresh and Prime Air have been criticized for increasing prices of the products they sell, with some people complaining they were no longer worth the cost of the service.
Amazon says it has made significant investments in the program, but has yet to see results from its own research.
“We’ve been working on Prime Air for more than a year, and we are committed to making Prime Air even better,” Amazon said in a statement.
“As we continue to work with Prime Air, we are also making Prime Fresh even better.
But, to make sure Prime Fresh is a better product than Prime Air is a challenge, we’re lowering the prices.”
Prime Air is the same as AmazonFresh but includes perks like free two-day shipping and unlimited Prime access.
The move will be the latest step in the retailer’s battle with rising prices.
Last month, it cut its price of a popular video game console and software bundle by about 50% for the holiday shopping season.
The online retailer’s prices have also been rising over the last year, driven by the increased cost of goods, such as new smartphones and computers.
It has struggled to maintain strong margins in recent years, however, and has been forced to cut back on a number of product promotions in recent months.
Amazon also said it plans to discontinue some of its popular shopping services, such in-store deliveries, and move its online business to a new headquarters in Seattle.
“Amazon has made enormous investments in Prime, but we need to keep doing that in order to build the best Amazon customer experience possible,” Amazon CEO Jeff Bezos said in the blog post.
“It is now time to make Prime Fresh the best way to shop for products and services that are best for you and your family.”
AmazonFresh has been the subject of a fierce backlash online, with many customers arguing it was not worth the money and that it was a scam.
The company also has a history of offering high-priced items to customers that were not worth it, and it has also faced criticism for charging a premium for some services, like its Prime service.
Amazon has a $9 billion market cap, and is valued at $60 billion.