Reader Question: Is Amazon Prime worth the money?

Amazon has changed the face of e-commerce, taking online shopping to a whole new level and offering everything from fresh grocery store items to flat-screen TVs. In an effort to make online shopping more appealing Amazon has been offering annual membership to Amazon Prime, which includes free two-day shipping on your orders, unlimited deliveries, no minimum. However, this premium service isn’t cheap, costing subscribers an annual fee of $99. So this begs the question, is it worth it?

Answer: In Short, it depends.

Here are four times when Prime is worth the annual cost.

  1. You tend to procrastinate. Do you do all of your online shopping last-minute? If you use expedited shipping at least five times a year then Prime will save you money.
  2. You are a student. Amazon Student offers prime membership at half the cost, plus a free six-month trial. That’s 18 months of Prime for only $50.
  3. You are a parent who orders diapers via Amazon. Amazon Mom offers two-day free shipping along with 20% off diaper subscription services. 
  4. You stream movies and video. Amazon Prime allows users to stream movies and TV shows, no additional fee required.

Here are three times when Prime is not worth the annual fee.

  1. Your orders usually total at least $35. Amazon offers free shipping on orders over $35. If your orders usually total at least $35 and you could care less about expedited shipping then a Prime membership isn’t worth the fee.
  2. Most of your orders are via third-party vendors. Unfortunately the Prime two-day free shipping does not apply to third-party marketplace vendors.
  3. You order from Amazon less than 10-20 times a year. Amazon Prime is best suited for the frequent online shopper; if you don’t fall into this category than Prime is a sure-fire budget buster.

Still unsure if Amazon Prime is worth it? Take advantage of a free 30-day trial prior to committing to the annual fee.