Amazon Prime: Is It Worth It?
Earlier this week it was announced that Amazon will be raising the cost of their Prime Membership from $99 to $119. Whether or not you are a Prime member, this cost increase will have you looking a little bit more into the value of what the membership provides. Is it worth it or not?
When it comes to deciding the value of something, especially a membership, you must look at the details of what is provided and what your usage will be. Take for example a gym membership. If you only go once a week, then the cost of each visit is going to be much higher than if you went 5 times per week. You must then look at the cost of each visit to determine if that membership is a value to you or not. Well, you have to do the same thing with Amazon Prime.
While the membership provides many great services like Amazon Prime Video, Prime Music, Prime Pictures and a lot more, most people are members for the free 2-day shipping on most items. The announced increase will now take the cost to $10 per month, so to see if you are getting value from it, determine how many times you order from Amazon and use the 2-day shipping option for Prime members. Now, if you are using the shipping offer just about every day, then you are probably seeing a value in the membership even with the cost increase. But let’s say you only use it once a week. That would equal $2.50 per shipment (obviously ignoring the other benefits of the membership). Only use it twice a month? That takes your cost to $5 per shipment.
So you may be saying to yourself that even at $5 per shipment, there is a ton of value to you. That may be the case, but you also have to take into consideration the other aspects of your shopping. The major one is the cost of the goods you are buying. Amazon has been brilliant into conditioning us to look at them first and exclusively for items that we buy. We assume that they have the best price, but that is not always the case. There have been many instances where I have found better pricing at places like Walmart and Target as well as direct from the companies website. In fact, I just bought some water bottles from Iconiq and each bottle was $2 less directly from them then the same exact ones that were on Amazon. So I immediately saved $6 by going direct to them. I did have to pay $3 in shipping so my savings dropped to $3 (excluding the Prime membership cost) The other bonus is that the shipment came one day after my order, not the 2 days that Amazon provides for Prime members. Now a $3 difference in a purchase is not going to make or break anyone, but think about this; that was about 10% of the cost of my order! So saving 10%, or $3 on every order over time, really adds up!
So when that price increase hits in June, really look at your shopping habits and determine if Amazon Prime really is the great deal that you think it is.