What Amazon Prime Includes
Prime membership ($139/year or $14.99/month) bundles many services:
- Free 2-day shipping: On millions of items, with same-day/next-day in many areas
- Prime Video: Streaming movies, TV shows, and Amazon originals
- Amazon Music: Ad-free streaming of 100 million songs (with ads in shuffle mode)
- Prime Reading: Free ebooks and magazines
- Amazon Photos: Unlimited full-resolution photo storage
- Prime Gaming: Free games and Twitch subscription
- Prime Day: Access to exclusive sales events
- Whole Foods discounts: Special pricing for Prime members
- Amazon Fresh: Free grocery delivery in select areas
The Math: When Prime Pays for Itself
Free shipping typically costs $5-10 per order without Prime. Here's the break-even math:
- At $5/order shipping: Prime pays off after ~28 orders/year (2-3/month)
- At $8/order shipping: Prime pays off after ~17 orders/year (1-2/month)
- At $10/order shipping: Prime pays off after ~14 orders/year (just over 1/month)
If you factor in the $8.99/month value of Prime Video alone, Prime basically pays for itself with just 5-6 orders per year.
When Amazon Prime IS Worth It
You order from Amazon monthly
If you place 12+ Amazon orders per year, Prime almost certainly saves you money on shipping. The streaming services become free bonuses at that point.
You'd subscribe to a streaming service anyway
Prime Video has excellent original content (The Boys, Rings of Power, Reacher). If you'd pay $9-15/month for a streaming service, Prime is essentially shipping with free streaming.
You have a household
Prime allows sharing with one other adult and up to 4 children in your household. A family of 4 paying $139/year works out to less than $3/person/month.
You use Amazon Fresh or Whole Foods
Free grocery delivery and Whole Foods discounts add significant value for members in covered areas. Prime members save an average of $100/year on Whole Foods purchases.
When Amazon Prime is NOT Worth It
You rarely shop online
If you make fewer than 10 Amazon orders per year, you're probably paying more for Prime than you'd spend on shipping. Just pay per order.
You prefer other retailers
Walmart+, Target Circle, and Costco often have better prices on specific categories. If Amazon isn't your primary retailer, their shipping perks don't help you.
You don't watch Prime Video
Prime Video is a significant part of the value proposition. If you're not interested in streaming or already subscribe to Netflix/Disney+/etc., you're leaving value on the table.
You're trying to reduce spending
Prime's convenience can encourage impulse buying. One-click ordering and free shipping remove friction that might otherwise give you pause. Some people save money by NOT having Prime.
Prime vs Competitors
| Service | Price | Best For |
|---|---|---|
| Amazon Prime | $139/year | Amazon shoppers, streaming bundle |
| Walmart+ | $98/year | Walmart shoppers, gas discounts |
| Target Circle 360 | $99/year | Target shoppers, Shipt same-day |
| Costco | $65/year | Bulk buying, warehouse shopping |
How to Get Prime Cheaper
- Student discount: Prime Student is $69/year (50% off) for college students
- EBT/Medicaid: Qualifying members get Prime for $6.99/month
- Annual vs monthly: Paying annually saves $41 compared to monthly billing
- Prime Day deals: Amazon sometimes offers discounted Prime subscriptions during sales
The Bottom Line
Amazon Prime is one of the best values in subscriptions IF you use it. The combination of free shipping, streaming, and other perks justifies the cost for regular Amazon shoppers. But it's not for everyone - evaluate your actual Amazon order history before subscribing.
Our Verdict
Amazon Prime is worth it for households that order from Amazon at least once a month and will use Prime Video. The value is even better for students ($69/year) and families who share the account. Skip it if you're not a regular Amazon customer or are trying to curb online shopping.