Is amazon prime worth it we think it is, despite the membership fee hike – business insider gas 0095

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Asking the question "how much would you pay for Amazon Prime" is kind of like asking how much would you pay to keep using Google. It’s so fundamentally entrenched in our daily lives (with over 90 million US subscribers, estimated in 2017 at about 64% of the nation’s households) that it has reached an almost ubiquitous status. We are used to near-instant gratification, and for many of us, it’s hard to put a price on that convenience.

But that price is, unfortunately, rising. Amazon Prime memberships will now cost $119 per year rather than $99 — an increase of 20%. The new price will take effect May 11 for new subscribers, and current Prime members will see the change when they’re up for renewal, starting June 16.

The increase comes after a four-year price plateau due to a variety of reasons. There are more Amazon Prime members than ever and those members are buying in higher volumes, naturally driving up shipping costs. President Donald Trump has also threatened higher U.S. Postal Service rates for the company overall. And, lastly, Amazon is more aggressively pouring money into its digital content offered to Prime members. JP Morgan estimates Amazon will spend 5 billion on this aspect alone in 2018, up from 4.5 billion the year prior.

At least the last reason promises increased value to members. For the $119 annual fee, Prime members gets a slew of benefits (which definitely range in usefulness): free two-day shipping, free same-day shipping, and free two-hour delivery on eligible items (of which there are many), exclusive rewards and discounts, Prime Video, Prime Music, online photo storage, music and books, and about 20 other perks.

Granted, you may not use every feature included in your annual membership. If you’re a student and/or have access to a university email and save 50% on the yearly fee with Prime Student or you share your Amazon Prime and most benefits with family members via Amazon Household, your dollar stretches even further. Prime is also discounted ($5.99 per month) for qualifying customers with an EBT or Medicaid card. But even if none of that applies to you, it’s still generally a great investment. Especially since JPMorgan estimates that your Amazon Prime membership is actually worth $785 annually.

Ultimately, most of us will pay the increased fee without much grumbling. But, if you want a breakdown of the ways you’re saving and potentially reassess the cost, check out our breakdown below. If you’re unsure and haven’t made the leap yet, check out a 30-day trial of Amazon Prime before deciding it’s worth committing to. Here’s a breakdown of why Amazon Prime is still a great value, even at $119 per year:

Discounts or rewards for choosing no-rush shipping at checkout:If you can wait a few extra days for your order to arrive, you can either earn rewards on future purchases or receive discounts immediately. Rewards are automatically added to your account once your free No-Rush order ships and they are automatically applied to qualifying orders as well.

A rewards credit card with no annual fee or foreign transaction fees:Get 5% back at Amazon.com and Whole Foods Market, 2% back at restaurants, gas stations, and drugstores, and 1% back on all other purchases. You’ll also get a $70 Amazon.com gift card instantly upon approval, and you can redeem your points on Amazon as well as for cash back, gift cards, and travel.

Added discounts and exclusive options in Prime Pantry:You can do a free 30-day trial, but Prime members can tack on $4.99 per month for access to thousands of household essentials, many of which are not available elsewhere on Amazon. Pantry-exclusive coupons save you even more money on these items. C ustomers receive free shipping on all orders of $40 or more or pay a flat $7.99 shipping fee for each order they place.