Is Amazon Prime really worth it?
Amazon Prime is an annual or monthly subscription service that offers free or discounted shipping on qualified items, and a portfolio of services that include streaming video and music, Kindle e-book library, cloud storage, and additional savings programs such as Amazon Family. Amazon Prime Day is a shopping event for Prime subscribers similar to Black Friday or Cyber Monday when shoppers can enjoy discounts and deals usually not available the rest of the year.
In 2022, Amazon raised the rates for a Prime membership to $139 a year, or $15.00/month. The student rates also went up to $69 a year or $7.49 a month. It is also available to EBT/Medicaid and select government assistance recipients for $6.99 each month. The monthly option makes the sticker shock a little easier to absorb in a monthly budget.
Here’s our take on the Amazon Prime Membership question. We’ll touch on the most popular prime benefits. Want the full list? You can view all the benefits right here on Amazon.
1. Is the Free, Fast Shipping Really Worth it? Instant Gratification Junkies Say Yes!
If you live near an Amazon warehouse or facility, there is a possibility you might be able to get eligible items on the same day you order them This can be a game changer if you are an immediate gratification shopper or have a bad habit of waiting until you run out of something to order more. I live less than 10 miles from an Amazon facility, and let me tell you, being able to order groceries for the next day and throw in something I need like a keyboard to replace the one my kid spilled juice on yesterday is awfully convenient.
I’m not alone. 58% of Amazon shoppers indicate that same-day delivery would make them more inclined to spend more on each purchase.
Even in areas where Amazon shipping availability is not same or next-day, it’s still fast due to Amazon’s carefully structured shipping and delivery systems. The main draw for most Amazon shoppers is convenience. Nearly 66% of Prime users felt that Amazon offered the fastest shipping.
And we're not just talking about books and iPads here, either. Check out a few more Delivery Benefits:
Groceries: Amazon Fresh, Whole Foods Delivery and other grocery options offer fast grocery delivery services in many areas in major US metropolitan areas, to include seafood, produce, snacks and household essentials. While I’m still holding out hope for meal kits like Home Chef to be available through Amazon, there’s still plenty of options if you’re sitting in a meeting stressing about what you are going to whip together for dinner using what’s in the fridge after being too busy to shop all week.
Amazon’s Pharmacy offers fast two-day shipping on prescriptions. No insurance? They offer some pretty impressive savings and the ability to comparison price shop your prescriptions at most major pharmacies.
But is it cheaper?
Let’s look at some statistics: The average spend for the U.S. household on Amazon each year in 2019 was around $1,400, or about $117 a month, compared to $600 spent a year by non-Prime members. Let’s assume this is divided up into 2-3 packages a month, that with a Prime membership are more than likely going to ship for free.
Most online retailers who don’t offer free shipping may charge between $5 and 14 per order, so we’re looking at an average of $9 or so per shipment. Assuming a shopper paid for shipping 3 times, that would be about $27 spent a month on shipping, or $18 for 2 orders in a month. If you pay that price to ship 3 orders a month you’re looking at nearly $325 a year.
Other Delivery Benefits:
The delivery methods are available to you are based on where you live. Some items are listed as Prime for some shoppers on a regional basis or by the quantity being ordered. By setting up and saving a default address in your Amazon account, you will be able to see how fast you can get things sent to you.
Shoppers with addresses in Alaska, Hawaii, or Puerto Rico still get free standard shipping and may also be able to utilize Expedited or Priority shipping for an additional fee.
Read more about Amazon's Shipping & Delivery options.
2. Reviews & Product Research
Most people (65%) who shop on Amazon are Prime members. In 2020, the most popular activity on Amazon (next to shopping) was to read reviews, and the third was to write product reviews.
Many Amazon shoppers take the time to share their experiences so others can make informed buying decisions. In fact, Amazon is the most popular place to read reviews of just about any product.
Some of Amazon’s highly rated reviewers are given the opportunity to review items for free or at a steep discount to help the community.
In 2021, there were over 200 million Amazon Prime members, with 65% of them located in the United States. 77 million households in the United States indicate they have one or more Amazon Prime subscriptions, up from 60 million in 2018.
That is a lot of consumers buying, trying, and reviewing. While there are a lot of fake reviews on Amazon in spite of the millions the company spends to fight them, it’s become easier to spot them.
3. Customer Service
33% of Amazon users indicate the company’s rapid response and resolution of customer complaints was one of the best parts of shopping on Amazon, followed by a streamlined checkout and returns process.
One thing I have learned over the years is that if you utilize the customer service chat option, are reasonable, friendly, and take the time to explain issues you may have with an order in a timely fashion, Amazon’s representatives are usually very helpful and try to make it right.
Read the return policies before purchasing. Check your purchase immediately on receipt to be sure everything works properly, keep your box until you know you are not returning the item, and keep an eye on your return window.
And don't abuse the return policies. You just make it more expensive for everyone else.
Amazon and most sellers offer returns on most items within 30 days of the product delivery date. While some items are not returnable, they may be refundable. Digital products are not returnable after purchase.
A few of Amazon’s store brands are guaranteed unconditionally with a refund offered at any time if you are unhappy with the product. These include Buttoned Down (tailored clothing), Core 10 (women’s athletic clothing), Moon and Back (baby clothing), Obsidian (Sunglasses), and Peak 10 (men’s athletic clothing).
Some of Amazon’s brand-name food and supplement items such as Wickedly Prime, Amazon Elements, Happy Belly, Mama Bear, and Presto! are eligible for returns within 365 days.
Other Amazon Prime Membership Benefits worth mentioning:
Prime Exclusive Deals: These change daily, but sometimes there are really good deals available just for Prime Members. Sometimes it’s a small percentage of a discount off something, but every now and then you find some really good prices.
Prime Early Access: Members get access to Lightning Deals on Amazon 30 minutes before other shoppers do.
Prime Try Before You Buy: As one of those people who is paranoid about dressing rooms, I love this one so much. You can add up to 6 items to a box that is sent to your house where you have 7 days to try items on before you are either charged for them or have to return them with a prepaid label and resealable box. Struggling to pick something out? You can add the services of an Amazon personal shopper/stylist for $4.99 and receive 8 items instead of 6.
Prime Reading, Amazon First Reads, and Audible Narration: You can get access to a rotating selection of ebooks, magazines, comics, and audiobooks. Early access to a curated list of new books to be released in a month? Yes please! Amazon First Reads customers can choose a Kindle book for free from this list. And if you like audio books, you can upgrade to Kindle Unlimited ($9.99/mo) for unlimited reading and listening on any of your devices from a library of over 2 million digital books, thousands of Audible-narrated books, and magazines.
So do we think Prime is worth it? Yes. If you love to read, shop, and be entertained, it’s an all-in-one digital destination that with a little finesse, can keep some of that money where it belongs: in your pocket!
- Amazon raised their prices in 2022 for Prime Memberships, to $139 a year for regular membership and $69 for students. You can pay a monthly or yearly rate.
- If you order more than twice a month from online retailers who do not offer free shipping, it will likely be cheaper to shop on Amazon to receive free shipping.
- Some areas of the US are eligible for next-day and same-day shipping.
- Shoppers in Alaska, Hawaii, and Puerto Rico will only receive free regular shipping and may stilll have to extra to receive expedited or express shipping.
- Other Prime benefits include delivery benefits such as prescriptions, groceries, ebooks, and more.
- Amazon reviews can be useful when making purchase decisions.
- Amazon has a generous return policy but there are limitations.