How Much is Amazon Prime? An In-Depth Cost and Benefits Analysis

What is Amazon Prime?

Amazon Prime is a membership program that provides a variety of perks and benefits to its subscribers. For an annual or monthly fee, Prime members get services like free fast shipping, streaming access to movies, TV shows, and music, exclusive access to deals, and more.

Prime helps drive customer loyalty to Amazon by providing convenient services that improve the shopping experience. Studies show that Prime members spend significantly more money on Amazon than non-members.

Amazon Prime Membership Options

There are a few different membership options at varying price points:

• Monthly: $14.99 per month
• Yearly: $139 per year (breaks down to $11.58 per month)
• Student: $7.49 per month or $69 per year
• EBT or Medicaid: $5.99 per month (must provide documentation)

Amazon offers 30-day free trials for new members to test it out. You can cancel anytime during the trial period to avoid being charged.

How Much Does Amazon Prime Cost?

The standard Prime membership costs either $14.99 per month or $139 per year. The annual option breaks down to about $11.58 per month, saving you approximately 23% versus paying monthly.

For college students, the Prime Student discounted rate is just $7.49 per month or $69 per year. Besides providing proof of enrollment, the membership is essentially the same as the regular Prime plan.

Customers with an EBT or Medicaid card can also qualify for a discounted monthly rate of $5.99 per month after providing documentation of eligibility.

Is Amazon Prime Worth It?

Whether Prime provides good value largely depends on factors like:

• How frequently you shop on Amazon
• Types of items you typically purchase (size, weight)
• Your location
• How much you value services like video/music streaming

For frequent Amazon shoppers that take advantage of the various Prime services, the membership usually pays for itself quickly in shipping savings alone. The breakeven point compared to non-members depends on usage habits, which we’ll analyze next.

Amazon Prime Benefits & Services

Prime comes packed with a number of useful benefits that improve the Amazon shopping experience. Some of the most popular perks include:

Free Fast Shipping

One of the cornerstones of a Prime membership is unlimited free two-day shipping on over 100 million items. These items are designated with a "Prime" tag.

Prime shipping is ultra-fast and reliable. According to Amazon, roughly 72% of Prime orders ship free in just one day.

This perk alone can drive huge savings versus non-Prime members paying full shipping fees. Exact savings depends on factors like:

• Number of orders
• Average purchase amount per order
• Average weight of items (affects shipping fees)
• Whether you select no-rush shipping options to earn rewards

For perspective, here are some average shipping rates for basic delivery tiers:

• Standard Shipping: $5.99 per item
• Two-Day Shipping: $9.99 per item
• One-Day Shipping: $14.99 per item
• Same-Day: $21.99 per item

As you can see, those fees add up quickly, especially for frequent shoppers. Prime members avoid them altogether.

Example Savings

Let‘s say you average about 25 orders per year, with an average of 2 items per order.

• As a Prime member, all items would qualify for free two-day shipping.
• As a non-member, assuming an order size of 2 items on average, you would pay roughly $20 ($10 x 2 items) in shipping fees per order.
• That translates to $500 in annual shipping fees as a non-Prime member.

Therefore, with 25 orders per year, the $139 Prime membership would pay for itself in shipping savings alone. And that example doesn‘t even factor counting savings from faster one-day and same-day options.

Media Streaming & Entertainment

Beyond savings for online shoppers, one of the other huge benefits of Prime is that a vast world of entertainment comes included. Let‘s look at some of the major services bundled with membership:

Prime Video

An extensive on-demand streaming library of movies, shows, original programming, live events and more. Comparable alternatives would cost up to $9 per month.

Prime Music

Over two million ad-free songs ready to stream or download for offline listening. Apple Music or Spotify cost about $10 per month.

Prime Reading

Rotating selection of Kindle ebooks, magazines, comics, books with Audible narration, and more. Equivalent value of ~$10 per month.

Prime Gaming

Free games, in-game content, and a free Twitch channel subscription each month worth $5. Average value around $12 per month.

If you were to purchase standalone plans for similar services, it would run over $40 per month–much pricier than a $13.99 Prime membership!

Exclusive Deals and Savings

Prime members unlock special pricing and discounts across Amazon‘s site. We‘re talking big savings for eligible members:

• Prime Day: Annual mega sale exclusive to Prime members that boasts Black Friday-level deals across every category imaginable.
• Lighting Deals: Limited-time promotions offering deep discounts on popular brands and products.
• Subscribe & Save: Up to 15% off household goods and everyday items from toilet paper to laundry detergent when you set up recurring delivery.
• Amazon Family: Up to 20% off essentials from diapers to formula when you set up monthly deliveries.
• Amazon Warehouse: Open-box, used and pre-owned items at rock bottom prices. Prime saves 20%.

Based on these stellar savings opportunities, Prime members effectively offset some (or potentially all) of their membership costs through exclusive discounts.

Other Prime Perks

Along with major highlights detailed above, Prime comes with an array of other free and discounted perks:

• Unlimited photo storage with Prime Photos
• Free release-date delivery on eligible pre-orders
• 30-minute early access to select Lightning Deals
• 5% back on Amazon purchases with the Prime Rewards Visa Card
• Discounts at Whole Foods Market (when account linked)

As you can see, a Prime membership encompasses far more than just free shipping. Subscription fees give you access to a premium, convenience-focused ecosystem delivering your movies, music, books, deals, and more.

When is Prime Worth It?

We‘ve established Prime offers really strong value, but are there cases when it makes more (or less) financial sense? Let‘s dig into some cost/benefit scenarios.

Worth It For: Avid Online Shoppers

If you frequently shop Amazon throughout the year or tend to place larger orders, Prime is likely to pay dividends through free shipping alone.

Especially if you often hit the $35 threshold for free standard shipping as a non-member. Why not pay a little more for 100X faster delivery and other elite benefits through Prime?

Example #1

• Make 50+ purchases per year
• Average order value around $50
• Mix of single and multi-item orders

Assuming you select free standard shipping about half the time, your annual shipping costs would run well over $150 as a non-member.

With Prime, you save at least enough on every 2-day delivery order to effectively wipe out the $139 membership fee. And that‘s not even counting exclusive Prime-only deals you unlock!

Example #2

• Larger household that makes 25+ big haul orders per year
• Average multi-item order value around $150

On $150 basket sizes, you‘d accrue upwards of $375 in annual shipping charges without Prime two-day, one-day or same-day delivery benefits. No question, Prime would drive major delivery savings to easily offset the $139 yearly fee.

Worth It For: Amazon Entertainment Users

For those not overly focused on shopping savings but wanting to unlock access to Amazon‘s impressive stable of entertainment options, Prime absolutely delivers a lot of bang for your buck.

Think about it…Netflix, Hulu, Spotify, Audible, Kindle Unlimited, etc. easily run $15-$20 per service.

Prime bundles comparable offerings together for members at a super affordable rate. If you consume multiple streams of entertainment monthly, Prime provides tremendous added value.

May Not Be As Worthwhile If…

• You rarely shop Amazon (less than 2x per month)
• Typically only buy cheap add-on items that ship free anyway
• Don‘t care about services like Prime Video/Music
• Prefer comparison shopping for the best deal (non-Prime items sometimes cheaper)

For truly occasional Amazon shoppers unlikely to take advantage of benefits beyond shipping, Prime may not make the most financial sense.

You can always elect for a monthly plan to lock in savings during more active periods like back-to-school or holidays. But otherwise, the math likely doesn‘t compute to justify a full annual membership.

In these cases, you may want to consider some Prime alternatives detailed next.

Alternatives to Amazon Prime

Prime provides exceptional overall value compared to standalones, but not everyone requires the full gamut of services offered. Here are a few tailored alternatives:

Walmart+

At $12.95 per month or $98 per year, Walmart‘s membership offers free next-day and two-day shipping on a huge catalog of items with no order minimums. Solid choice for superfast delivery.

Target RedCard

A Target credit card nets you 5% back on all Target purchases. Decent return if you mainly shop at Target.

eBay Bulk Shipping

eBay offers heavily reduced flat-rate shipping fees when sellers opt into bulk shipping rates. Good chance to score free or cheap shipping.

The bottom line? Prime still reigns supreme for Amazon loyalists and multi-category shoppers. But these alternatives do provide cheaper, more targeted options.

Key Takeaways: How Much is Amazon Prime & Is It Worth It?

• An Amazon Prime individual yearly membership costs $139 per year ($11.58 per month)
• Alternatively, you can opt to pay monthly at $14.99 per month
• Discounted rates available for students ($7.49/month) or EBT/Medicaid ($5.99/month)
• Prime provides exceptional overall value if you shop Amazon with any regularity
• Free fast shipping alone offsets membership fees for frequent shoppers
• Access to Amazon entertainment ecosystem (Video, Music, etc.) adds tremendous extra value
• Occasional Amazon shoppers may want to consider cheaper, more targeted alternatives

While Prime requires upfront membership fees, enhanced convenience, exclusive deals, and added entertainment access drives significant long-term lifestyle and financial value for members.

Overall, Prime leaves shoppers of all types asking, "How did I ever live without it before?"