The Inside Scoop on Amazon‘s Employee Discount Program for 2024
As an expert who has covered retail trends and HR topics for over a decade, I‘m often asked about the perks and benefits at the world‘s largest online retailer – Amazon. With over 1.5 million employees globally, Amazon‘s employee discount program provides a valuable perk for its massive workforce. Here‘s an in-depth look at how the program works and its value for employees.
Amazon‘s Growth Makes Employee Perks a Must
Amazon‘s sales have grown 15-20% annually, reaching $485 billion in 2021. With over 1.5 million employees worldwide, Amazon needs to provide attractive benefits to recruit and retain talent. The employee discount serves as a coveted perk – one study showed 89% of employees value discounts on products from their employer.
Discount Details – 10% Off, with Limits
Amazon employees get a 10% discount on eligible purchases after 30 days of employment. For 2023, the maximum discount amount is $1,100, increased from $1,000 in 2022.
Unlike some retailers, Amazon doesn‘t offer the employee discount 24/7 – it can only be used during certain promotional periods like Prime Day. Purchases are also capped at $100 of discounts per year.
Eligible Purchase Restrictions
The 10% discount only applies to products sold and shipped by Amazon directly. Third-party seller items are excluded, even if Prime eligible. Digital products like ebooks and services like audiobook subscriptions also don‘t qualify.
| Product Type | Discount Eligible? |
|---|---|
| Sold & shipped by Amazon | Yes |
| Sold by 3rd party | No |
| Digital media | No |
| Amazon Services | No |
This means many products advertised on Amazon won‘t have the discount, so employees need to check each item specifically.
Less Generous Compared to Other Retailers
Compared to employee discounts at other major retailers, Amazon‘s program is modest. For example, Target offers a 10% discount on all purchases with no limits. Best Buy provides employee price cuts of 5-25% off throughout the year.
| Retailer | Discount Amount | Limit |
|---|---|---|
| Amazon | 10% | $1,100 per year |
| Target | 10% | No limit |
| Best Buy | 5-25% | Varies |
Given Amazon‘s resources and dominance, some may expect a discount matching or exceeding other retailers. The limited nature of the program suggests room for improvement.
No Complimentary Prime Membership
Unlike warehouse club employees getting free memberships, Amazon workers don‘t receive complimentary Prime subscriptions. With Prime‘s $139 annual fee, this is a missing perk compared to rivals like Target offering free subscriptions to comparable loyalty programs.
Health, Retirement Benefits Help Offset Discount Limits
While the product discount is limited, Amazon does offer robust health insurance and retirement savings options:
- Health coverage from $20 per pay period
- 401(k) matching up to 4% of pay
- Employee stock purchase plan
The combination of the discount along with insurance and retirement benefits makes Amazon compensation competitive. But the product discount itself trails rivals in terms of generosity.
Conclusion: A Perk With Room to Improve
The Amazon employee discount offers a valuable but limited deal for workers. With restrictions on products, purchase amounts, and promotional timing, the program falls short of some competitors. But with stellar health and retirement benefits, Amazon workers still get a compensation package that attracts and retains talent. As Amazon grows, enhancing the employee discount program could ensure it remains an attractive workplace benefit.
