Editor’s note: This post was originally published in January 2013. Since then, the price of Amazon Prime has risen to $99 a year.
Is Amazon Prime worth it?
At $79 a year, Amazon Prime
Here’s how Amazon Prime works: You pay the annual fee, and during that time you get the following:
- Free two-day shipping with no minimum order (and discounts on one-day shipping). Or choose not to get the free two-day shipping and get standard shipping free and a bonus credit (usually MP3 credits) instead. You can share this feature with other members of your household, which is a plus for spouses shopping for each other.
- Free unlimited, instant streaming of thousands of movies and TV shows.
- Free access to the Kindle Owners’ Lending Library which allows you to borrow one book a month (Choose from thousands of titles and more than 100 current and former New York Times Bestsellers).
What’s good about Amazon Prime
Delivery by UPS.
I live in a rural area. So rural, that my postal carrier doesn’t always deliver my packages to my home. When that happens, I have to make a 14-mile trip (28 miles total) to town to pick up my package. Amazon Prime orders are usually shipped by UPS, which means they always get delivered to my doorstep within 2 days of ordering. And it’s free! This means a big savings on gas and it’s a big time saver, too. I’m able to use UPS MyChoice to track when my packages will arrive, too.
Free access to movies and TV shows.
I must admit, I haven’t taken advantage of this feature because I just don’t have the data capacity out here in the country. (If I downloaded a couple of movies, I wouldn’t have enough bandwidth to blog). But if I had a great internet connection, you can bet I would use this service all the time. While the selection isn’t quite as good as Netflix, it is a little bit cheaper. This would be a nice perk for someone who’s trying to cut their cable costs.
Free Kindle books.
If you figure that most Kindle books cost between $3.99 and $12.99, and you’re able to borrow a book for free, every month, then membership in Amazon Prime is a good deal. You could save $150 a year or more, depending on what titles you borrow. Of course, if you only ever read books from the library, it’s not much of a deal to pay for the subscription. But if you often buy books to read, Amazon Prime will definitely pay for itself.
What’s not good about Amazon Prime
You’re likely to spend more money than you want to.
When you can get what you want delivered for free in just two days, it’s pretty easy to impulse buy. Regular Amazon customers need to meet a threshold of $35 to qualify for free shipping. Waiting to have enough items in your order to meet that minimum purchase requirement can help you hold back from making snap decisions. When you’re an Amazon Prime member, it’s pretty easy to see a deal and grab it… and you don’t have the time to process whether it is a smart purchase or not.
Not all items qualify for Amazon Prime two-day shipping.
Some items sold by third-party vendors through Amazon are not eligible for Amazon prime. The same thing goes for most “Subscribe & Save” items. This means you may end up paying shipping despite having the Amazon Prime membership.
You need good internet to take advantage of the free video streaming.
You need to have a great data plan and a fast connection to take advantage of the free movies and TV shows. You’ll also need a computer or device to watch them on. If you get hooked on watching movies this way, chances are you’ll want to invest in various cables to connect your computer to your TV or a Roku HD Streaming Player
The Kindle Owners’ Lending Library is limited.
The Kindle Lending Library has thousands of titles you can read for free. But the quality of some of the titles is limited and the most popular titles are often not available. The Kindle Lending Library is also not the easiest resource to source, which makes it a bit of a time-suck when it comes to finding a free book to read. I’ve read a few good books and a few not-so good books from the Kindle Lending Library. Your mileage may vary.
So is Amazon Prime worth it?
An Amazon Prime subscription is worth it if you are a Kindle owner who places a lot of orders through Amazon. It’s worth it if you are homebound or live in a rural area where transportation options may hamper your ability to shop in brick and mortar stores. It would be great for seniors who want to shop from home or for busy moms who don’t want to take the kids with them to the store.
It’s also a great service for those who love books, television shows, and movies.
But if your goal is to save money, then skip it. You’ll face constant temptation with Amazon Prime, and you’ll feel a subtle pressure to make sure you’re using the premium service you’ve paid for.
Sign up for Amazon Prime only if you will actually use at least two of the major benefits of the service regularly. Otherwise, save your money. Amazon offers free standard shipping on orders of $25 or more and it only takes a few extra days for your order to arrive. And if you watch Twitter and Facebook, you’ll probably be able to periodically snag free or cheap instant movie downloads. And of course, there are always free Amazon books to be found throughout the year.
What do you think? Is Amazon Prime worth it?
Note: This post contains affiliate links that help support this site at no additional cost to you. Please read our full disclosure policy for more details. Thanks!
One big advantage of Prime for me is the shipping fees for gifts. All of my family lives all over the country, so it’s worth purchasing through Amazon and having them ship it (I never pay for gift wrapping, I just ask someone in the recipient’s home to do it). That saves me time and lots of money at the post office!
That’s a great idea, Gina! I hadn’t thought of that since all of our family is local, but that would be a big savings!
This is really helpful! I just got a Kindle, and have considered paying for Prime. I had it for free for a year under some special for college students, and really liked it, but $80 is a big chunk of change. I think you’re spot on about spending more money than I need to (probably just to feel amazed about that two day shipping).
For now, I shall stick with Hulu, the library, and regular Amazon.
Thank you!
I LOVE having Prime. Amazon often has some of the lowest prices, and with the help of discount/frugal blogs I’ve often been pointed in the direction of the rock bottom lowest prices for an item and then with Prime for no shipping I get a great deal. The selective movies/tvs show doesn’t bother me, I just put on my Kindle Fire whatever is free. I haven’t utilized the lending library but I get my book selections from all over anyway. To me, it’s more than paid for itself.
Actually I signed up for Prime to continue on with my Amazon Mom membership which ended. By signing up for Prime I get 15% more (I think its 15%) off diapers and wet wipes that I buy through Subscribe and Save. I figured if I buy those items every month the discount makes the $79 worth it.
Yes, $79 per year is a large chunk to pay for Amazon Prime. In fact, my husband and I have snuck in under Amazon student, so we have some time before needing to pay that full amount…BUT! Depending on how much online shopping you do, whether it is for gifts, household supplies, or fun things, it is totally worth it in the shipping. So many websites force you to spend a specific dollar amount in order to get free shipping….things included in the Amazon Prime list (which is nearly everything) are free to ship, regardless of how much you spend. If you figure that shipping for the average item is between $5-10 per item, and if you purchase, say, 7 items individually, you could have your prime membership purchased in those shipping cost.
My husband and I also live rurally and before I drive the 45 minutes to “town” to get something, I always check Amazon’s prices. They are usually comparable and with free shipping, cheaper, because I won’t have to pay gas. Even with Sam’s Club they are sometimes cheaper. I find that is where I start my shopping because they have so many items!
We use their Amazon Prime Instant Video instead of paying for Netflix or Hulu. We both have kindles and use the lending library. The only bummer we have found with that is that you can only loan one book per month per account, not per device. But we have made it work.
SO all in all, depending on how much online shopping you do for anything (including groceries!), it is defiantly worth it! It will pay for it self, and to have it in 2 days is awesome! AND If you need it tomorrow…it is only $3.99 shipping per item….who can beat that!?!
I love it cause you can share the account with 4 people even if they live in different houses. So you can split the 80 bucks into 20 and have the same access if you paid for it yourself. I love prime.
I didn’t know they didn’t have to be in the same household! That’s very interesting! I’ll have to check that out!
I too, live in Rural MN. I LOVE prime. We have 2 kindle fires and 2 kids who use them. I love that we can watch unlimited Barney, Mister Rogers and so forth. It is great because we stream via our xbox 360 as well. I borrow books as well – saves me a 32 mile trip to the library. I know for some it will not make sense, but they are always adding to the benefit and I really enjoy my membership and know it is something that works for my budget.
We love having Amazon Prime. No longer do we have to wait until we have $25 in stuff that we want to buy to get the free super saver shipping. I used to buy extra things to get to that $25 so I didn’t have to pay for the shipping and LOVE that it is 2-day shipping. I find I make less Target trips because I order stuff from Amazon so often. Certainly says on the gas money to have to make a Target run.
OK, I know you said that the library is difficult to source — I have been trying to figure out how to get there for quite a while now. (I am reading Amazon’s directions, but the “kindle owners lending library” they send you to doesn’t seem to exist…) Anybody have any tips on this? Could this be a future post — specific directions for dummies on accessing the kindle lending library?
I will try to write up something very soon, Joanna!
I find that it does matter which particular Kindle you have. In helping others that’s been a key factor. We found the best help on our LIbrary’s website under ‘digital downloads’ and it gives fairly detailed instructions on using Overdrive. That site was far better than the Kindle instructions. Hope that helps.
The instructions are different if you’re borrowing books through Overdrive from your Public Library, so you are right in suggesting following the library’s instructions there.
Oh sorry if I misunderstood.
Oh, no apologies needed… It was good to point out that you can also borrow books for free from the public library.. I’ve done it a few times, but it always seems like the wait list is so long for the titles I want that I forget to check… And forget it’s even available.
We LOVE Prime! I was skeptical at first and thought like everyone else that surely we’d spend far more. Not so. Of course, one has to know their own habits and self-control issues ;-). When we decided to get it, we agreed that we would only use Amazon as we had before. We research products, compare prices, learn a lot from reviews and make our most educated purchase decision. Factoring in speed of availability, whether we truly need it, whether we like the price, whether fit will be an issue (will I have to return it/costs) etc.
We live 45 minutes from anything! So gas prices are a HUGE factor in shopping decisions, although we plan ahead and use shared grocery list apps (‘our groceries’), and plan which days we shop where. However, the biggest factor is whether we know where to buy things already. Our area is spread out, the first 45 minutes gets us to one end of town with some shopping (Target, WM, JCP, Cash & Carry, LOWES). Costco, Winco, Larger malls and select stores are another 15-30 minutes west of town. So there too gas prices factor in. “Is the price difference enough that it’s worth driving all over town looking for it, OR scouring for sales?” Often this really is the deciding factor. Having Prime then means that I don’t have to waste valuable time in the shopping process AND that it will get here about the same time as my scheduled shopping day. If I had little ones at home, I would definitely choose Prime.
Now, for the items that are wants or simply not urgent needs…that’s where the camels come in! CamelCamelCamel.com and it’s Camelizer Plug-In are life savers. I also utilize customized Amazon Wish-lists that I can view on my phone via the free Amazon App, for things I’m considering or postponing. The Camels notify me when Amazon prices drop to the levels I am interested in, a feature I love. There’s a trick to using that wisely as well, but we love it. When I shop in store I also use the Amazon App to comparison shop when I’m unclear how good of a deal it is, I love the UPC scanner for that.
We live by a detailed budget, enter rcpts daily and communicate how we’re doing for the month regularly. That also helps us to determine if purchases should wait or not, OR if the deal is that good we take it out of the next months budget. Our purchases always get us cash-back in one way or another, and often online only discount codes add further value or at least equal it out to shopping B&M. We work hard not to carry debt other than a mortgage; we don’t pay for TV either so the Prime streaming feature adds value there as well. Before we renewed we evaluated our purchase history and determined that it was worth every penny.
Hope that helps someone!
Also, we regularly use the Subscribe & Save option (where applicable) to get further reductions, those can be canceled at any time. We just write a Google calendar reminder for ourselves to check on it before it auto-sends.
When you factor in the cost of gas, Amazon Prime definitely makes sense.
Thanks for the tip on CamelCamelCamel.com! I haven’t tried that before. I also recommend http://jungledealsandsteals.com/ for deals and freebies.
I’ll check it out! Thanks!