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    Pros and Cons of Amazon Prime

    Amazon's membership service comes with plenty of perks, but do you really need to pay for it?

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    Amazon Prime envelopes and boxes Photo: Kathryn Marx/Consumer Reports

    With Amazon Prime Day coming up next month, you may be wondering whether it is worth signing up for a Prime membership ahead of the big sale. Amazon just announced that this year the sale will take place over four days instead of the usual two, running from July 8 to 11, giving consumers more time to shop the deals.

    Amazon is one of the largest retailers in the world, and a cornerstone of the company’s business model is its paid membership. Amazon Prime is a subscription-based service that provides users with several benefits.

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    Members can pay monthly or annually to take advantage of those perks and services. You can opt for the monthly subscription of $14.99, which you can cancel anytime. Or if you know you’ll use the service all year, you can save $40 by paying the $139 annual fee.

    Certain individuals can get up to a 50 percent discount on memberships. If you’re between the ages of 18 and 24 and taking at least one course at a college in one of the 50 states or Puerto Rico, you’ll now pay $7.49 for a month-to-month membership. Qualifying government assistance recipients can use Prime Access for $6.99 per month.

    Launched in 2005, Amazon’s membership service, Amazon Prime, has evolved to include various benefits.

    The main driver of Amazon Prime has always been free expedited shipping for over 100 million products. Many customers are now eligible for same-day, one-day, and two-day shipping at no additional cost.

    Membership also includes services such as Prime Video, unlimited cloud photo storage, exclusive access to deals, and Prime-exclusive sales events like Prime Day, Amazon’s early holiday sale in the fall, discounts on grocery items in Whole Foods stores, and even savings on gas at participating locations.

    How Amazon Prime Works

    Since its launch, Amazon Prime has expanded into many other areas, including offering free streaming movies and music, rapid delivery options, and discounts on groceries.

    New members can sign up for a free 30-day trial to sample all the Prime benefits before committing to membership. If you cancel before the trial ends, you won’t be charged. And even if you’ve signed up for the trial in the past, you can still sign up as long as it’s been at least a year since your last trial.

    Amazon also offers Prime members an extra 10 percent off items at Whole Foods Markets and additional weekly price cuts on select products.

    More Benefits

    Free same-day delivery: Orders that meet the minimum threshold, typically $25, qualify for free same-day delivery on more than 1 million items. Amazon will provide an estimated window of time for the delivery, and if your order doesn’t reach the minimum, you may still be able to pay a small fee for same-day shipping.

    Amazon Prime Day: Every summer, Amazon holds a major two-day sales event that rivals Black Friday, called Prime Day. This year the sale will take place over four days, from July 8 to 11. You must be a Prime member to access the sale, which includes discounts on Amazon devices and popular products across a slew of categories.

    Prime Big Deal Days: For the past two years, Amazon has held a second two-day sale to give shoppers a head start on holiday shopping. The sales, similar to Prime Day, have typically lasted two days in mid-October, and Amazon has offered countless deals on popular products and brands. Unlike Prime Day, you don’t need a Prime membership to shop the sale.

    Lightning Deals: Members qualify for early access (30 minutes before everyone else) to short-term, deeply discounted Amazon Lightning Deals that often feature high-tech and fashion goods. The sales happen every day on select items, including during big sales like Prime Day and Black Friday.

    Prime Video: Membership includes instant access to tens of thousands of movies and TV shows, including Amazon original series. Prime is also the exclusive home of “Thursday Night Football.” You can watch at home on your computer, Fire TV, or other compatible devices.

    Amazon Music: This service offers unlimited ad-free access to more than 100 million songs and thousands of playlists, stations, and podcasts. The free version for nonmembers includes ads and has a large but limited library of playlists and stations. You can upgrade to Premium for $10 per month (even if you’re not a Prime member), which provides higher-quality music in either HD or Ultra HD, which may be optimal if you’re using high-end Bluetooth speakers to listen.

    Amazon Photos: Secure unlimited photo storage in the Amazon Cloud Drive.

    Grubhub+: Prime membership includes a Grubhub+ subscription, which otherwise costs $10 per month, at no additional cost. When this partnership was first announced, members were given a one-year subscription for free. The offer was extended to two years, and now it’s simply another unlimited perk of paying for a Prime account.

    Prime Gaming: Members have access to a free Twitch channel subscription, as well as select free games and in-game items.

    Prime Reading: This service has replaced the old Kindle Owners’ Lending Library. It gives Prime members access to over 1,000 books, magazines, comics, and more. All of these can be accessed on a Kindle or Fire tablet or through the free Kindle app on iOS and Android. Many of the books are available with Audible Narration for Prime members if you prefer to listen to your books.

    Audible: Because Audible is owned by Amazon, Prime members can sign up for a free trial of Audible Premium Plus, which comes with two credits that can be used for any titles in the entire Audible library (and most books are available for one credit).

    Amazon Kids+: This monthly subscription service costs $6 per month for members ($8 for nonmembers)—you can also pay annually at $48 for members and $79 for nonmembers. It grants access to original content as well as content from brands like Disney, Nickelodeon, PBS Kids, Marvel, and Lego. You can try it for one month free of charge.

    Amazon Prime Rewards Visa Signature Card: The Amazon Prime Rewards Visa Signature Card, via Chase, gives cardholders 5 percent back on purchases made on Amazon and at Whole Foods, as well as with any Chase Travel purchases. Some purchases even qualify for 10 percent back, and those rewards can be used at Amazon or via Chase as cash back or gift cards, or for travel.

    There are other benefits to using the card. You’ll get 2 percent back at gas stations, restaurants, and drugstores, and 1 percent back on any other purchases. There’s no annual fee, and if you use the card while traveling, there are no foreign transaction fees.

    Amazon Pharmacy: Members can use Amazon to access all their medications, and they’ll be delivered with Amazon’s two-day shipping guarantee, so no more trips to the store. There are perks like discounts and automatically applied manufacturer coupons, and you can view and manage all your subscriptions from the app. There’s also a service called RxPass that provides more than 50 medications for just $5 per month—and there’s no limit to how many you can get at this price, as long as they qualify.

    One Medical: This service costs $9 per month (or $99 annually) for a Prime member and $6 per month for each additional family member (up to six people per Prime account). It grants you virtual access to a care team who can answer questions for everyday health concerns, help book in-person appointments, provide prescription refills, and more. It costs $199 annually for non-Prime members who want to use the service. And it’s worth noting that virtual visits will still be billed to you or your health insurance.

    Prime Fuel Savings: Prime members can save $0.10 on the gallon at over 7,500 BP, Amoco, and Am-Pm locations. You’ll need to sync your account with Earnify to get the savings. There’s even a promotion to save double during the month of June.

    Amazon Fresh: Amazon’s grocery delivery service allows Prime members to order their groceries online. This service used to cost an additional $15 per month but is now included in the cost of the full Prime membership. There is a delivery fee now, but it gets reduced the more you spend. Spend over $150 and delivery is free. For orders of $100 to $150, you’ll pay $4. Orders between $50 and $100 will see a fee of $7, and orders under $50 will cost an additional $10.

    Whole Foods: Like Amazon Fresh, Prime members can have groceries delivered from Whole Foods. But the two can’t be combined into one single delivery because they’re packaged in different places. Delivery used to be free for Prime members, but now it costs $10 per delivery. You can still schedule a pickup at no cost, however. Prime members can save an additional 10 percent off everything except alcohol, whether shopping online or in-store. Plus, there are Prime-exclusive specials and sales.

    Buy With Prime: Prime benefits now extend beyond Amazon’s own site. Members can shop at participating merchants’ online stores and still enjoy free expedited shipping and free returns.

    Affirm: Amazon partnered with the buy-now, pay-later credit provider Affirm, allowing customers in the U.S. to split the total cost of eligible purchases of $50 or more into monthly payments at checkout, with no late or hidden fees.

    Amazon Household: Two adults living in the same household can create an Amazon Household to share certain Amazon Prime benefits and save money on membership fees. And you can add kids to the plan: up to four teens and up to four children. Teens can shop, but parents must approve purchases. Adding children allows parents to manage parental controls on Fire tablets, Kindle E-readers, and Fire TV through Kindle FreeTime.

    Amazon Key In-Garage Delivery: In 2017, Amazon launched Amazon Key, which allows couriers to enter your garage to drop off packages even when you’re not there. The service requires you to have a Chamberlain myQ Smart Garage Control system, which costs less than $30 and is easy to set up, according to our evaluator. You can also use the service if you have an Aladdin Connect WiFi RetroFit Kit, which CR has not tested. You can also connect your Ring camera to this service, but it is not required.

    Amazon Day: Amazon added this feature to its Prime membership in 2019. Amazon Day offers consumers the option to schedule deliveries. If you know you’ll be home every Friday, for example, you can instruct Amazon to deliver all your packages that day. You can still choose to receive orders on other days and by one-day or two-day delivery if an item is needed sooner. This also allows Amazon to consolidate items into fewer boxes and cut down on the number of trips to your home, helping to reduce its carbon footprint. The company says it aims to make 50 percent of its shipments net-zero carbon by 2030.

    Why You Might Not Want a Membership

    Of course, not everything about Amazon Prime is worth the membership cost. There’s the question of how often you shop on Amazon. If you aren’t ordering much or you don’t think you’ll take advantage of many of the services that membership offers, you might as well pass.

    If you’re unsure whether Prime is right for you, consider signing up for a free trial. You’ll have 30 days to give it a test-drive. But take note: At the end of the trial period, your credit card will be charged the membership fee automatically for the next period unless you cancel in advance.

    Paid members who haven’t used their benefits are eligible for a full refund, which means even if you forget to cancel, Amazon will refund any charges—just contact customer service. However, you can’t receive a refund if any household member has placed a Prime-eligible order.

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    Consumer Reports

    Consumer Reports

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