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- Amazon Prime will increase from $ 99 per year to $ 119.
- The new price will take effect May 11 for new subscribers, and current Prime members will see the change when they’re up for renewal, starting June 16.
- Even with the 20% increase, Prime is still ultimately a great deal if you plan to use its features, whether sparingly or frequently.
Asking the question “how much would you pay for Amazon Prime” is kind of like asking how much would you pay to keep using Google. It’s so fundamentally entrenched in our daily lives (with over 90 million US subscribers, estimated in 2017 at about 64% of the nation’s households) that it has reached an almost ubiquitous status. We are used to near-instant gratification, and for many of us, it’s hard to put a price on that convenience.
But that price is, unfortunately, rising. Amazon Prime memberships will now cost $ 119 per year rather than $ 99 — an increase of 20%. The new price will take effect May 11 for new subscribers, and current Prime members will see the change when they’re up for renewal, starting June 16.
The increase comes after a four-year price plateau due to a variety of reasons. There are more Amazon Prime members than ever and those members are buying in higher volumes, naturally driving up shipping costs. President Donald Trump has also threatened higher U.S. Postal Service rates for the company overall. And, lastly, Amazon is more aggressively pouring money into its digital content offered to Prime members. JP Morgan estimates Amazon will spend 5 billion on this aspect alone in 2018, up from 4.5 billion the year prior.
At least the last reason promises increased value to members. For the $ 119 annual fee, Prime members gets a slew of benefits (which definitely range in usefulness): free two-day shipping, free same-day shipping, and free two-hour delivery on eligible items (of which there are many), exclusive rewards and discounts, Prime Video, Prime Music, online photo storage, music and books, and about 20 other perks.
But, all in all, is Amazon Prime still worth it, even at its new $ 119 cost?
In short, yes. As RBC Capital Markets’ Mark Mahaney wrote, “There are three great deals in America today – the Happy Meal ($ 3.29), Netflix ($ 10.99), and Prime (even @ new price of $ 119 – up 5 Grande Lattes…a year).”
Granted, you may not use every feature included in your annual membership. If you’re a student and/or have access to a university email and save 50% on the yearly fee with Prime Student or you share your Amazon Prime and most benefits with family members via Amazon Household, your dollar stretches even further. Prime is also discounted ($ 5.99 per month) for qualifying customers with an EBT or Medicaid card. But even if none of that applies to you, it’s still generally a great investment.
Ultimately, most of us will pay the increased fee without much grumbling. But, if you want a breakdown of the ways you’re saving and potentially reassess the cost, check out our breakdown below. If you’re unsure and haven’t made the leap yet, check out a 30-day trial of Amazon Prime before deciding it’s worth committing to.
Here’s a breakdown of why Amazon Prime is still a great value, even at $ 119 per year:
Shipping costs.
Amazon
The annual price of $ 119 includes free two-day shipping on over 100 million items. Without Prime, you’ll get free regular shipping if your order is over $ 25, but no two-day perk. This could promote over-shopping (adding more to cart so as to meet the threshold).
Two-day shipping (give or take a couple bucks) typically costs about $ 10. If, as a Prime member, you place 11 orders of under $ 25 over the year on Amazon (say, you need paper towels but not much else), the membership pays for itself.
And while expedited shipping is an abnormal cost for most of us, it’s a pricey one. However, Prime’s free same-day shipping on over a million items in 8,000 cities when you spend over $ 35 can save you money, time, and convenience. Order before noon and get your items that day by 9 p.m. Just check your zip code to see if same-day and one-day options are available near you.
On average, Amazon Prime members spend $ 1,300 US dollars on the platform every year. Non-Prime users spend a little more than half that ($ 700), but they may be picking up the tab elsewhere, like in the cost of gas to shop in-store, the higher price of items from big-box retailers, and shipping from other stores.
Video streaming services.
Amazon
One of the suspected reasons for the increase in annual fee is how much money Amazon is pouring into its digital content, which is one of the best perks of the Prime membership.
Prime Video lets you stream from a large library of movies and TV shows for free, including Prime Originals content, and rent the latest releases for low prices. Prime members can also subscribe to over 100 channels (and only pay for the channels they want, which is great for saving money without losing convenience), including HBO, Showtime, and CBS All Access.
Plus, it’s probably only going to get better as Amazon continues to force itself into the space. The company recently struck an exclusive two-year renewal for the NFL’s “Thursday Night Football” games to live-stream on Prime Video, for which Amazon is paying $ 65 million per year, Reuters reported.
Unlimited photo storage and sharing, as well as 5 GB for videos and files.
Amazon
Prime Photos lets you save and share unlimited photos across desktop, mobile, and tablet, as well as share unlimited photo storage with up to five people. If you’re paying a few bucks every month to increase your iCloud storage just to make room for the photos on your phone, you can cut out that cost and use your membership to a fuller extent.
You’ll also get five GB for videos and files. And Prime Photos comes pre-installed on Amazon devices, so you can also view your photos from your Fire TV and Echo Show.
Sharing Prime benefits across an entire household at no additional cost.
Amazon
If you’re using it as a family, Amazon Household is one of the easiest ways to see the return on your Prime membership investment. Two adults and up to four teens and four child profiles may link in a ‘Household,’ allowing everyone in the family to enjoy Prime benefits (free shipping, Prime Video, Prime Photos and share content like ebooks, audiobooks, games, and apps) without paying extra. This alone makes Prime a good deal if you or your family members use any of the features even sparingly.
Another benefit of linking accounts is that adults can approve orders before they’re placed (for teens) and set parental controls on digital content (for kids).
Prime exclusive rewards and discounts, like Prime Day deals, Lightning Deals, and a rewards credit card that gives you 5% cash back.
Amazon
Your Prime membership also makes you eligible for lots of exclusive deals, which are the metaphorical cherry on top of the rest mentioned.
The most impactful is access to Prime Day deals, but you also get exclusive access to the following:
Early access to Lightning Deals: Prime members get an extra 30 minutes to shop lightning deals (which typically last only for a few hours) before they’re officially open. Just look for the “Prime Early Access” label as you shop the page.
Discounts or rewards for choosing no-rush shipping at checkout: If you can wait a few extra days for your order to arrive, you can either earn rewards on future purchases or receive discounts immediately. Rewards are automatically added to your account once your free No-Rush order ships and they are automatically applied to qualifying orders as well.
A rewards credit card with no annual fee or foreign transaction fees: Get 5% back at Amazon.com and Whole Foods Market, 2% back at restaurants, gas stations, and drugstores, and 1% back on all other purchases. You’ll also get a $70 Amazon.com gift card instantly upon approval, and you can redeem your points on Amazon as well as for cash back, gift cards, and travel.
Added discounts and exclusive options in Prime Pantry: You can do a free 30-day trial, but Prime members can tack on $4.99 per month for access to thousands of household essentials, many of which are not available elsewhere on Amazon. Pantry-exclusive coupons save you even more money on these items. Customers receive free shipping on all orders of $40 or more or pay a flat $7.99 shipping fee for each order they place.
The option to try clothes on at home before actually buying them.
Amazon
Prime Wardrobe lets you try on and purchase new styles at home. Choose three or more items across their many lines and try them on at home before deciding what to keep and pay for. You have seven days to choose, and you can just check out online once you’ve decided. From there, return your unwanted items for free using the resealable box and prepaid shipping label.
If you don’t frequently shop online this might not save you much money through your membership. But if you’ve ever gotten burned by a short return window and a busy schedule, the try-before-you-buy is a great feature to save money in the long term.
Access to books, magazines, and comics.
Amazon
Prime members get access to Prime Reading which means they can choose up to 10 titles at a time from more than 1,000 options as a perk of membership, and Amazon First Reads gives you access to one free Kindle book every month.
And if you have kids and find yourself spending a lot on kids’ books, movies, TV shows, or educational apps and games put-together, Prime members can pay $2.99 per month for a single child or $6.99 for a family of four kids for FreeTime Unlimited, which gives members unlimited access to 13,000 options. Start a trial here before committing.
Parents can set controls like time limits and content filters, and personalize the experiences of each child profile. It’s available on Fire Tablets (books, videos, apps), Kindle eReaders (books), and Android phones and tablets (books, videos).
Free Prime Music streaming and discounted Amazon Music Unlimited.
Amazon
Prime Music is a benefit of your Prime Membership that features a growing selection of 2 million songs which you can listen to ad-free and on-demand. If you want to expand your options, Amazon Music Unlimited ($7.99 per month) has a larger library of tens of millions of songs and lets you download them for offline listening on any device. Depending on your own preference, Amazon Music Unlimited might be a better deal than popular choices like Spotify Premium ($9.99 per month). You can find a trial here to determine which one is better ultimately for you.
Save 50% on Prime with access to a university.edu email or as a qualifying customer with an EBT or Medicaid card.
Shutterstock
If you have access to a .edu email and haven’t yet become a member with it, you can get a six-month trial of Prime Student at no-cost and then pay 50% less than other Prime users ($6.49 per month) after the trial ends for four years or until your indicated graduation date — whichever comes first.
Prime is also discounted ($5.99 per month) for qualifying customers with an EBT or Medicaid card.
Free standard shipping and returns on Shopbop, East Dane, and Woot!.
Shopbop
Your shipping benefits are key, and they extend past Amazon.com. You can get free two-day shipping by signing into your Amazon account while shopping at Shopbop, East Dane, and the great flash deals at Woot! as well.
Exclusive discounts on unlocked phones.
Twitch Prime live video streaming and viewing.
Twitch.tv
Twitch is primarily used to watch video gameplay but also hosts many other types of live streams, including talk shows and cooking shows. Prime members get ad-free viewing, a free Twitch channel subscription ($4.99 per month otherwise), discounts on pre-order box games, and a Prime-exclusive chat badge.
Free Audible Channels audiobooks and podcasts.
Audible
Similar to the free books in Prime Reading, this Audible benefit unlocks free full-length audiobooks exclusive to Prime members as well as playlists handcrafted for every interest and Audible-produced news, humor, and crime podcasts. Instead of $60 per year for Audible on its own, Prime members get it for free.
Time.
Amazon
Perhaps the biggest (and most valued) thing you will save with Prime is time. With free two-hour delivery on household items with Prime Now, free same-day shipping on over a million items, and consistent two-day shipping on everything else, you’ll save time commuting, browsing, price-matching, and waiting in lines.
And if you find yourself waiting in lines for new video game releases, you’ll save even more with free release-date delivery on new video games, books, music, and movies if you can wait until 7 p.m. day-of for delivery.
In select cities, you can even enable Amazon Key in-home delivery, so you don’t even need to be home to bring your packages indoors. It’s a secure in-home delivery on millions of eligible items. It’s possible with the Amazon Key Home Kit ($219.99), which can also be used normally to schedule home access for guests, friends, and family.
On delivery day, you’ll get a notification in the morning with a four-hour delivery window for when the driver will arrive at your home. Right before the driver arrives, you’ll receive an “Arriving Now” notification and can opt to watch the delivery live through the Amazon Key App.
You can even get Amazon Key in-car delivery, which means you can get Amazon packages securely delivered right into your vehicle when it’s parked at a publicly accessible area. Find out if your car is eligible here.
