The estimated reading time for this post is 4 minutes
Last week unprecedented, yet expected tech news was announced: Amazon declared that the price of Amazon Prime would be raised from $79 to $99 beginning on April 17. The announcement was unprecedented because the price of the service had never been raised since Amazon Prime was launched in 2005, in spite of significant benefits being added to the service. The announcement was expected because, well, the price had to be increased at some point.
Amazon Prime is estimated to have over 20 million subscribers in the US, UK, Canada, Germany, Spain, France, Italy and Japan as well as other
What Do You Get with Amazon Prime?
Amazon Prime is a bundle of benefits for $79/year, which will increase to $99/year beginning on April 17. You can try Amazon Prime for 30 days for free to see if you like it, but you should also consider what you get for your money to see whether it’s a good deal for you.
Amazon Prime gives you:
1. Shipping Benefits
- Free 2-day shipping on eligible items
- $3.99/item 1-day shipping on eligible items
- Free standard shipping on eligible items
Often Amazon gives incentives such as credit for a free song when you choose standard shipping for an Amazon Prime item.
[note]When you’re buying an Amazon Prime item, consider whether you really need the item in 2 days. If you can wait a bit longer, choose standard shipping instead. Your choice will be better for Planet Earth and may postpone the next price increase for Amazon Prime.[/note]
2. Amazon Prime Video
A competitor to Netflix, Amazon Prime Video gives you free, unlimited streaming of videos including movies and TV shows. You can also download Amazon Prime videos now. Check out Amazon Prime Now Has Free Downloads for Movies and TV Shows!
=> See, Can I Stream It? Easy Search for Movies and TV Shows for information on a free service to check whether videos are available on Amazon Prime vs. Netflix.
=> Also check out Streaming vs. Downloading Videos — What’s the Difference?
3. Kindle Owners Lending Library
If you’re a member of Amazon Prime and own a Kindle device, you can borrow one eligible book a month for free from the Amazon Prime Lending Library.
For more information, check out, Kindle Owners Lending Library – Free Kindle Books!
Is Amazon Prime Worth $99 for You?
When you decide whether to get Amazon Prime, you should consider which of these free services you will be using. The more you use Amazon Prime services, the better deal it will be for you. Even if you only use one service, Amazon Prime may be still be worthwhile.
See, Time, Don’t Want to Pay $99 for Amazon Prime? Here Are 5 Alternatives
1. Shipping
If you make frequent purchases from Amazon, getting Amazon Prime may actually save you money. Amazon gives free shipping for certain items if your purchases add up to $35 or more. If you find yourself constantly adding items you wouldn’t have otherwise purchased to avoid shipping charges, you may be wasting money just to get free shipping.
Slate created a widget to help you decide whether Amazon Prime’s free shipping will be worth $99 for you: Slate’s Amazon Prime widget. Note that this widget only calculates the shipping benefits of Amazon Prime.
If you want to do your own calculations, check out Amazon’s rates for Standard, 2-day and 1-day shipping: Amazon Shipping Rates.
2. Amazon Prime Instant Videos
Although Amazon Prime’s Instant Videos offerings may be fewer than those of Netflix, you may still find enough movies and TV shows to keep you entertained.
Not all Amazon Instant Videos are eligible for Prime, but you can find videos such as:
TV Series
- Downton Abbey
- Under the Dome
- How I Met Your Mother
- Orphan Black
Movies
- Marvel’s Avengers
- Hunger Games
- Skyfall
- Flight
3. Kindle Owners’ Lending Library
If you own a Kindle, Amazon Prime may be a very good deal for you. Not all Kindle books are eligible for Amazon Prime, but over 350,000 books are, including New York Times Best Sellers. If you borrow a book a month and you figure that the average price of a Kindle book is $10, you would save $120 a year, well over the $99 cost of Amazon Prime.
4. Amazon Prime Music
Update: As of June 2014, Amazon now includes Prime Music, an unlimited, ad-free streaming music service with Prime membership. See, 5 Updated Tech Tools You’ll Want to Get Now! for more information about this benefit.
Poll
What do you think of Amazon Prime at $99? Do you think that Amazon Prime is a good deal for you? Vote in the poll and let us know your thoughts:
Infographic
This infographic illustrates how Amazon Prime is a good deal for Amazon:
Your Thoughts
Are you a member of Amazon Prime? Will you get Amazon Prime for $99? Which services of Amazon Prime offer the most value to you? let us know in the Comments section below!
*********************
*Amazon Box Image (edited) by sⓘndy°
*Amazon Fulfillment Center image by Scottish Government (edited)
Hi Carolyn,
I’m not sure about Prime. To me it doesn’t seem worth the price because I always get free shipping anyway at Amazon. I add books I like to my Wish List and when I’m ready to order I make sure (no problem in doing so) there are at least enough to meet the minimum for free shipping.
Thanks for the free shipping infographic too. Will have to give that some thought!
Lori
Hi Lori, Yes, you can get free standard shipping if you add enough to your shopping cart at Amazon. You’re very wise to plan ahead and add books to your cart that you’re interested in reading to get your total up to enough for free shipping.
I don’t believe that Canada includes Prime Instant Video or Kindle Owners’ Lending Library in its Prime membership but Amazon Canada hasn’t announced an increase to the price there, yet.
Hi Carolyn,
I really had not realized that Amazon Prime has been around since 2005. That’s amazing. I think the price increase is justified and most people will take it in stride.
For me personally, I haven’t signed up for Prime yet so I still need to way my options. I’m not sure I will be buying much in the next few months so maybe I’ll wait until I need something big.
Thanks for all the info Carolyn!
Hi Ileane, Yes, a lot of people use the 30 day free trial at the holidays so they can send all of their gifts with 2-day shipping for free.
I signed up for Prime in 2010 when I was buying a trampoline for my girls’ birthdays. The local stores didn’t have any in stock and I spent so much time trying to find a trampoline at a store that I was getting tight on time. I ended up ordering one from Amazon, signing up for a Prime trial membership. I saved over $100 on shipping that trampoline and was quickly hooked on Prime.
That was before Prime Instant Video and Kindle Owners’ Lending Library was added to the benefits. I’m keeping my Prime membership even at $99 but I realize it’s a different calculation for other people.
I think I’ll drop it. I haven’t used it that often and we are definitely hooked on Netflix (member since 2003 and frequent reviewer).
Hi Lee, Yes, if you don’t use Prime much and you already have Netflix then you may not want to spend $99 on Prime. Would you have renewed at $79?
Actually, the increase caused me to actually start thinking about it — your analysis really helped focus my thinking. Thanks.
That’s great, Lee. Thanks for stopping back by to let us know!
The info graphic images made everything to understand and vote for not sure :/
Hi Frank, I’m glad the infographic was helpful to you. I am a fan of (good) infographics because they help to illustrate important information.
Thanks for voting, Frank!
Hey Carolyn,
As much as I purchase through Amazon even paying the shipping still wouldn’t add up to the $99 a year that it would cost me to get free shipping IF I happen to quality for it on the items I purchase.
I don’t watch movies like that so I wouldn’t use it and right now I don’t have time to read in order to get a free book a month on my Kindle. I just wish I did.
I think for people who order a lot or only shop Amazon then it would be a great deal.
Everything has to go up eventually right! I’m surprised it went up $20 though.
Thanks for the info and you have a great week.
~Adrienne
Hi Adrienne, Yes, if you’re not a big shopper on Amazon, don’t read Kindle books and don’t watch movies, then you don’t have a tough choice to make. But for those who do shop online a lot, Prime may be able to save them money, even at $99.
Whenever I shop at a website that has shipping charges I realize how very much Amazon has spoiled me. I usually see significant shipping charges when I go to checkout and then also see that my items will get to me in 7-10 business days. I head right to Amazon to see if they have the same item for the same price because I know that I can get the item in 2 days for free shipping.
I cut the cord a year or so ago so the streaming of Amazon Prime plus Hulu Plus and Netflix is my “cable” and I never run out of anything to watch. Although many shows are just duplicates of what I have on Hulu and Netflix, I have found many shows that are not available elsewhere.
For those where the cost is the only issue, you could always split the cost with 4 of your “family” members.
Hi Katrina, Great points. Yes, if you don’t want to pay for cable TV, you could save a lot of money by signing up for Amazon Prime instead for the TV shows and movies, plus get the free 2-day shipping and Kindle books as well!
I signed up for Amazon Prime on Thursday and cancelled on Friday when I realized that I wouldn’t benefit much from it. I’m not ordering as many print books as before since I got a Kindle and can download books on promotion. I don’t care to join Kindle Lending Library as I have more than enough books to read. I use Amazon video on demand occasionally but more recent series or new episodes (such as The White Queen) are not included in Prime. Prime is similar to other so-called promotions: you have to spend money in order to save money and sometimes this isn’t a good fit.
Hi Penelope, Wow, so you didn’t even wait for the whole 30 day free trial period before canceling your Prime membership. That may have been wise so you didn’t forget and were charged for a year.
Good point. It is ironic that with the advent of Kindle books you need fewer shipments because Kindle books can be delivered electronically. That’s great you have enough books to read already. There are many ways to get inexpensive and free ebooks and Kindle Owners’ Lending Library is just one of those many ways.
Thanks for stopping by and sharing your thoughts with us, Penelope!
I had a trial membership to Prime and was gonna cancel before the day it charged…sadly, I missed the cancellation and the $79 was charged, so I have it for the year. I haven’t used it much…a few episodes of Under the Dome, but I like Netflix’s UI better and am more used to that. Since i have Prime for this year, I’ve been using Amazon whenever it makes sense to make purchases and get free 2-day shipping. In July, Prime is cancelled (already on my calendar as a reminder–but especially since the price is increasing). It’s just not worth it for me, but I think it’s a great service for those who buy from Amazon a lot. Great analysis, Carolyn.
Hi Steve, My husband actually prefers Amazon to Netflix so I guess it’s a matter of preference. Yes, I have done similar things accidentally too and gotten charged for something because I didn’t cancel in time. I hope you get some use out of Amazon Prime during your year!
Hi Carolyn,
To answer your question, I guess it all depends on how much you are going to use all those services/advantages. In my case, I wouldn’t do it because I’m not a consumer enough of those things and in my case, again, it would be quite some waist of money, but I’m sure that thousands of people find it practical for them.
As for the increase of $20 at once I think that’s a bit much.
That’s my 2 cents 🙂
Hi Sylviane, Yes, perhaps Amazon would have faced less resistance if it had incremental increases each year for Amazon Prime. I wonder if people cancel their Prime memberships in droves whether Amazon will rethink its strategy.
For those who shop, read and watch movies a lot, Prime may still be a good deal. But it doesn’t sound as if you would benefit from Prime, Sylviane.
Hi Carolyn,
I just love Amazon Prime! I have children and grandchildren all over the US. Considering that, there are holidays, birthdays, special events. I purchase everything on Amazon for them and Amazon Prime has been a blessing.
It is so easy and because I don’t have to pay S&H, I can have them gift wrapped if I want. Also the shipping is fast and efficient.
I’ll never go back!
-Donna
Hi Donna, It’s great to hear from a fellow Amazon Prime fan.You’re right, it’s almost circular, once you have Prime it makes sense to shop a lot at Amazon. And when you shop a lot at Amazon, it makes sense to have Prime. Prime does make shopping easier and less expensive if you shop a lot online.
Thanks very much for sharing your Prime experience with us, Donna.
we can simply say , yes it is for me (us) as reports says ,
For Amazon, the move could generate significant revenue. While the company has declined to say exactly how many Prime members it has, estimates put the number at more than 20 million members. Gene Munster, a Piper Jaffray analyst, told the Wall Street Journal that he thinks the company has 18.7 million Prime users in the U.S. Based on that estimate, the Prime increase could generate $374 million each year for Amazon.
Hi Sameer, Welcome to The Wonder of Tech! Fascinating analysis by Gene Munster, though those numbers don’t take into account the people who will quit Prime because of the price increase. Instead, those numbers assume that every Prime member will renew their membership this year at an extra $20 per year which is highly doubtful. Those numbers also don’t take into account the lost revenue from the people who quit Prime and will presumably buy less from Amazon.
Time will tell whether this move will help or hurt Amazon’s bottom line.
If you shop Amazon.com like I do, the $99 is well worth it just to get FREE shipping. I LOVE Amazon and use it for all kinds of items, including doggy stuff. 🙂 The videos and kindle books are just an added attraction. Even without them, I’d still go Prime! 🙂
Thanks for sharing this Carolyn!
Hi Bren, Wow, you certainly sound like a fan of Prime! Yes, when I first signed up for Prime the Kindle Lending and Instant video weren’t available and I still thought it was a good deal. Those additions were a big deal to many and probably lured in more Prime members. I wonder why they didn’t pair those added benefits with a price increase. Perhaps that would have been a better opportunity to increase the price of Prime then.
Thanks for sharing your Prime experience with us, Bren!
Hey Caroly,
Ya know, I use Amazon all the time but never really looked into getting Amazon Prime. Now that you explained it to me, I may have to look at what I’m spending and if it would be worth the value for me. Who doesn’t love saving money?? Thanks for sharing. Lisa
Hi Lisa, Yes, if Amazon Prime can save you money then you will really appreciate the convenience! It’s very easy to get spoiled by free 2-day shipping which makes shopping at other websites less appealing.
You can still sign up for $79 until April 17 so it’s a great time to give it a try!
Hi Carolyn,
It’s not worth it for me. I was buying quite a lot from Amazon, but now I’ve discovered buying direct from Hong Kong! I’m making another investment (rghts issue) next week, but then I’ll save a little for a new lens for my camera and maybe a speedlight too. They are half the price in Hong Kong and my purchase will be legally protected if I use my credit card. We’ve had a little sunshine in England, but the weather seems like it’s back to normal today. Cold windy and rain! I’ll go take a look at some of your other posts that I’ve missed now. I was busy analysing the stock market and sorting out tech problems like a slow computer.
Hi Mike, Yes, buying from Hong Kong may save you money though I imaging the shipping to the UK isn’t 2 days.
We had a snow storm here yesterday so cold and rainy seems pretty good, I guess.
I will be by to check out your articles soon. I’m still debating which of your photos is my favourite from last week!
Hi Carolyn,
No I do not own Amazon Prime and have no plans to join.
I buy an occasional book or item but not frequently enough to
save anything in shipping. Most items I buy are sent to relatives in
another state, but only spent about $25. last year, so the economics don’t
compute!
Not a big movie fan, so watch what is available on satellite or go
to a theater if that interested.
Hi Cararta, Yes, if you only spend $25/year online and wouldn’t take advantage of the other benefits then Amazon Prime wouldn’t be your best deal. You’re right it is convenient to shop online to send gifts to people who live far away.
Carolyn, I don’t order enough from them each year but I did not know about the streaming video’s as I just cancelled my HBO which was like $15 per mo. So with that and the Kindle books it is something I could consider in the future. Thnks for sharing all these pros and cons with us on Amazon Prime.
Hi Lisa, You’re right, if all you wanted was to replace your HBO account with an Amazon Prime membership, you would save money plus have the added benefits of free 2-day shipping and Kindle books while saving money. Pretty sweet deal when you look at it that way!
Great post Carolyn! Very informative as always.
Difficult to say, just because its a 25% jump. But I think we just have to buy more from Amazon to justify the price increase 🙂 Isn’t that their hidden agenda!! Ahh I love how these websites read consumers’ mind!
Heck yeah it’s worth it; Amazon is building two fulfillment centers in my backyard, one in Polk County and one just over the line in Hillsborough County. Maybe they’ll let me just drive over there and get my stuff, huh?
I haven’t signed up but would like to; my wife needs to write a blog the Wonder of No Tech. She is very resistant to change and went through a panic attack when she was trying to figure out her new 5s (but loves it now). I would like it for the books mainly so I know it would pay for itself.
Maybe I’ll drive over to the fulfillment center and see if they would let me pay them in cash so there is not credit card trail when I sign up…:).