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Amazon Prime: Is It Worth the Cost?

This article was written by in Consumer, Shopping. 1 comment.

In 2006, I was receiving about five deliveries a week from online shopping orders. What can I say? I was an online shopaholic.

Amazon Prime was only a year old at the time, and I became tired of hoarding filler items in order to qualify for the $25 free shipping minimum. To me, receiving free two-day shipping on most Amazon items for $79 a year was a bargain. It was that “happy medium” between instant gratification and having to drive to a brick and mortar store, hoping an item was there, and waiting in line for checkout.

Since then, Amazon Prime has grown to more than just free two-day shipping.

Amazon Prime Membership

The standard Amazon Prime Membership is $99 per year and includes:

  • FREE Two-Day Shipping on tens of millions of items
  • Prime Music. Unlimited, ad-free access to millions of songs and thousands of playlists and stations with Prime Music
  • Prime Video. Instant streaming of thousands of movies and TV shows with Prime Video
  • Amazon Drive. Free unlimited photo storage
  • Prime Reading. Read unlimited books, magazines, and more on any device with Prime Reading
  • Twitch Prime. Ad-free Twitch viewing with free in-game loot and a free channel subscription every 30 days.

Most of my friends and family members who have Amazon Prime don’t take advantage of all the features or fail to understand all the features that are available. If you are looking for a Netflix alternative, the Prime Membership pays for itself. Plus, it comes with additional benefits — if you want to listen to ad-free music or read a book every now and then, you get that, too.

Let’s take a look at each feature.

Free Two-Day/Expedited Shipping

Two-day shipping charges for most items without a Prime Membership usually start at $6 a shipment. However, an Amazon Prime membership includes many shipping benefits in addition to just getting free two-day shipping.  Here are the other shipping benefits listed on Amazon’s website:

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FREE same-day delivery is also available in many metropolitan areas, an added value of about $32 or more for shipping costs. (I got this number by estimating Fedex same day costs for a one pound shipment in the same zip code).

Many of those metropolitan areas also offer Prime Now, which offers FREE 2-hour delivery. If you only need two or three items from the supermarket or drugstore, the convenience of Prime Now may be worth the small tip to the delivery guy when you consider the time and gas saved.

Prime Music

Prime Music includes over two million ad-free and on-demand songs in the Amazon library. As of 2014, Pandora had about 1.5 million songs in their library. Currently, Pandora One is priced at $4.99 a month. Amazon’s functionality and catalog (which you’ll access for free with Prime membership) is very competitive with Pandora One’s ad-free offerings.

Prime Video

Prime Video includes award-winning Amazon Originals, exclusive streaming rights to many TV series, and thousands of other movies and TV shows. In 2016, Amazon’s original series were nominated for 16 Emmy Awards, so these are quality shows and movies that can directly compete with Netflix, HBO, and Showtime’s catalogs.

In addition, you can concurrently watch Prime Video on up to three devices (as opposed to Netflix’s Standard Plan, which includes two devices). You can also download Prime Videos for offline viewing on mobile devices for when you travel. The Netflix Standard Plan is $9.99 a month — compare that to Amazon Prime’s membership rate in terms of months, and it comes out to $8.25 a month for Prime Video (assuming you don’t utilize your membership for anything else).

Amazon Drive

You’ll get free unlimited photo storage with Prime Photos, and 5GB on Amazon Drive for personal video and document storage.

Google Photos is a direct competitor with Prime Photos, and is free for high-quality (lower resolution) images. If you would like to store your DSLR-quality images on Google Photos at maximum resolution, you will more than likely go over the 15GB of free storage limit provided with your Google account. You may have to upgrade to 100GB of Google Drive storage at $1.99 a month, which will allow you to store more DSLR-quality images on Google Photos at original resolution.

With your Amazon Prime membership, you can store an unlimited amount of DSLR-quality images on Prime Photos as long as your Prime Membership is active.

Prime Reading

Last month, Amazon launched a new Prime Reading program which grants you access to a catalog of over a thousand books, magazines, Kindle Singles, and more. Many of these books are available for purchase on the Kindle app for around $3.99 to $4.99.

Twitch Prime

Are you a gamer? Do you follow other gamers on Twitch? One of the lesser known features of a Prime Membership is Twitch Prime, which gives you ad-free viewing, a free channel subscription every 30 days, and free in-game goodies for some of the most popular games.

With the exception of the aesthetic Turbo Badge and Banner, Twitch Prime is identical to Twitch Turbo subscription ($8.99 a month). Even Twitch recommends considering cancelling your Turbo account if you subscribe to both!

Amazon Prime Value Calculator: Adding It All Up

Your favorite games, online shopping habits, music streaming preferences, and video streaming routines will vary from family to family and person to person. Because of this, estimating the value of an Amazon Prime membership can be a little difficult.

However, by comparing Amazon Prime features to competing services and subscriptions, we can determine the value of all of the benefits of an Amazon Prime membership with our handy Amazon Prime Value Calculator.

If the value of your services are over $99, then it is worth subscribing to Amazon Prime. Even if you intend to just use Prime Video or Twitch Prime, those features alone makes it worth subscribing.

Purchasing Your Amazon Prime Membership: Discounts

  • From now until Black Friday 2016, you can get a free trial of an Amazon Prime Membership for 30 days.
  • For the past few years, Amazon Prime Memberships have been discounted during the week of the Emmys to celebrate their nominations in the 67th and 68th Emmy Awards. In the past, this has been a steal at $67 (2015) and $68 (2016), respectively. I’m guessing that when Amazon Prime Originals get nominated again next year, you can expect a $69 discounted membership rate during next year’s 69th Emmys.
  • If you’re a qualifying student, the Prime Student membership gives you a free 6-month trial and

“After your 6-month trial ends, your Prime Student membership makes you eligible to receive 50% off Amazon Prime, including all Prime benefits, for up to four years or until you are no longer a student.“

Extra Amazon Prime Benefits: Tips, Tricks, & Tools

  • You get early access to some Lightning Deals.
  • Itching for Black Friday deals in the middle of the year? Amazon gives you exclusive discounts on Prime Day.
  • Amazon’s acquisition of Diapers.com lead to the creation of Amazon Family, which gives new moms and dads 20% off of diapers and more.
  • You can share select Prime Benefits and your digital content with up to two adults and four children using Amazon Households and Family Library.
  • Use Chrome extensions. There are two great Chrome browser extensions that can help with your Amazon shopping experience: Camelizer will search CamelCamelCamel.com for pricing trends for any Amazon item and Honey will search for any relevant coupon codes or less expensive sellers on Amazon.

Amazon Device Tips

  • If you own a Kindle, you already have access to the Kindle Owners’ Lending Library and Kindle First. Prime Reading will unlock more free content to read, but Kindle Unlimited may be worth it for you voracious readers out there.
  • If you own an Echo or Echo Dot, you can get an Echo plan subscription of Amazon Music Unlimited (only available for play on your Echo device) for $3.99 a month. Prime members get a full subscription at $7.99 a month.
  • Check here to see if your current Smart TV or internet connected media device supports Amazon Prime Video. Don’t have a compatible device? Purchase a Fire TV to start streaming your Prime Video content.
  • Going on a road trip? Download Prime Video movies for offline viewing on a Fire Tablet.

Summary

The Amazon Prime subscription is definitely worth the price for most people. Uamazon2sing the calculator, it only takes about nine shipments under $49 and occasional use of both Prime Music and Video to utilize a total value over the $99 membership price.

For those new to cord-cutting, Prime Video will help with the transition and will also give you alternatives like Prime Reading to get you away from the tube.

Content has shifted from tangible mediums, to digital files, to subscriptions, and now as a service.

Amazon clearly understands this shift and has aligned their Prime Membership as a freemium model. They offer free shipping to everyone on orders over $49, or orders that include $25 worth of books.

When you subscribe to Amazon Prime, you are subscribing to their first tier of freemium services listed above. This introduces you to the Amazon ecosystem. With the purchase of Amazon brand devices, this can further unlock new features and functionality of your Prime Membership. The final freemium tier are the additional subscription services of Kindle Unlimited and Amazon Music Unlimited.

Whether you are a music enthusiast, book nerd, couch potato, computer gamer, student, or new mom, Amazon Prime has something for everyone. With our tips, tricks, and Amazon Prime Value Calculator, you will definitely find out if it is worth it for you.


Updated November 19, 2016 and originally published November 14, 2016. If you enjoyed this article receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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avatar 1 Ramona

I think that, taking into account all the features, it’s a pretty sweet deal for 99 bucks/year. If you were to buy your music or rent videos the ‘old’ way, you’d probably break this budget in weeks, not an entire year.

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