When I checked my inbox this morning, there was an email from Amazon titled Upcoming Changes to Your Prime Membership. It basically said that my 2014 renewal rate will be $79, but when I renew in January 2016 the rate will be $99/year.
(But… my Amazon Prime console says On January 09, 2015, you will be charged $99 for another year of Prime, so who knows what’ll happen. If I renew and complain, maybe they’ll credit me the $20 difference.)
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I checked Amazon’s website, and it basically says the price will be going up in one week.
If you subscribe to Prime within the next few days, or start a free 30-day trial, you can subscribe at the rate of $79, at least for the first year.
Some people find Amazon Prime to be useful, others don’t.
I have been an Amazon Prime subscriber for quite a few years now. They have made some changes over the years, such as how 1-day shipping is no longer just $4 per item, but it’s still a great service.
Last night I ordered two 1/4″ thumb nuts at $7.50 or so each. Industrial suppliers have them at $6.80 each. MSC wanted $15 for shipping, and McMaster’s shipping would have been $5 or $6 or so. So I ordered it from Amazon and will receive them in 2 days, maybe less.
In the past 6 months, I placed 115 orders with Amazon. Some of those orders were over $35, a lot were under.
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To me, the Prime membership fee is worth the expedited shipping. Free 2-day shipping has spoiled me to where I am somewhat disappointed when I order from anywhere else and a package takes 3 days or longer to get to me.
Anyways, if you are one of those people who have been waiting to give Prime a try, now’s the time to do it if you want to save $20.
Subscribe now, or sign up for a free trial, and the rate will be $79. Wait too long and the price will go up to $99.
More Info(via Amazon)
Phill
thank you for the heads up, I will be cancelling my membership in November when the renewal is due. I will also make the change so you cannot auto renew my membership. you have just screwed you base membership
fred
I also got the notice and I have mixed emotions.
I understand that there is no such thing as “free shipping” since the cost must be accounted for somewhere. Sometimes the so called free shipping represents a discount that the vendor is willing to pass along – reducing their mark-up – because you are buying more (e.g. free shipping on orders over $xx).
Recently I’ve noticed that Amazon pricing, while still generally good, sometimes seems to just undercut or match other vendors’ prices with shipping charges. Another way that I look at this is that Amazon is already building shipping costs into some of their prices. As a result, on big-ticket items, I’ve started being more selective in my buying – doing more comparison shopping – and weighing Amazon’s prices and their excellent service – against other vendors.
Michael Quinlan
I’m not a Prime subscriber, and have questioned its value for a long time, but I don’t buy enough from Amazon to justify it. Plus, I’m not really fond of the idea or paying in advance and predisposing myself to choosing Amazon over other vendors, which is really what it’s all about.
Tomas
If you’re willing to live in the ecosystem it’s great. Sure I still shop around but I buy a TON from amazon. Just last week I got a new Little Giant Revolution XE ladder
http://www.amazon.com/Little-Giant-12022-RevolutionXE-300-Pound/dp/B0046LVG1Q/ref=sr_1_3?ie=UTF8&qid=1394722558&sr=8-3&keywords=little+giant+ladder
You show me where I can get the thing for $282 with free 2 day shipping that even delivers on Saturday….Or where I could even go locally to get it cheaper
Makes even more sense for small stuff. Bought an iphone charger for the car a couple days ago for under $10. Arrived yesterday via fedex for free….what’s the cheapest price you can pay to get an item shipped 2 day? Probably another $10
I also use their subsribe and save for things that the family uses regularly like diapers, wipes, forumula, etc. You get a 20% discount making the items even cheaper than costco/sams – and again delivered to my door for free
Increase away, it’s an incredible value at $99, or even $129….as long as you order often
Dennis
I got their letter this morning. I make a lot of use of my Prime membership, and am getting my money’s worth in what I save in shipping. I think it will still be beneficial to me at the $20 higher price point.
However what really bothered me was them siting increasing fuel costs over the last 9 years as one of the reasons for the increase. 1) I don’t think fuel costs have gone up over the last 9 years all that greatly, and as I see it they fluctuate down as well as up. 2) I deal with a lot of distributors that added fuel surcharges when fuel prices increased, but somehow none of them remembered to remove the fees when fuel prices come down. Funny how that works. I would have stomached the increase better had Amazon not included the fuel cost argument.
DanG
I’ve never been a subscriber to Amazon Prime due to never analyzing the benefits. When I found out that their streaming video (with closed caption) is tied to their Prime membership I decided to give it a whack and check it out free for a month. Looks like their movie quality is much higher than Netflix and there are a lot of movies that Netflix does not offer with CC. Who knows maybe I will pay the last $79.00 dollar rate they have this year.
Steve Cox
July 2005 Diesel was $2.37 gal, This morning in Farmington NM it was $3.67.
Looks like it has gone up some
Dennis
Well I guess you are right, according to the U.S. Energy Information Administration Diesel prices have gone up since 2005 U.S. No 2 Diesel Retail Prices (Dollars per Gallon) , with a major spike in 2008. Although when prices went down after that, there was no decrease in the cost of Amazon Prime…. I guess it’s sort of like the analogy of boiling a frog. If you put a frog in boiling water, he jumps out, but if you increase the temperature gradually he boils. Sadly in this example I’m the frog that didn’t notice fuel prices going up because it wasn’t drastic and all at once.
Although perhaps if Amazon cut out R&D on their drone program, they could decrease prices across the board.
Hang Fire
I’ll probably keep it. At the moment I have so many irons in the fire I order 2-3 times a week from Amazon. The money saved in gasoline alone easily justifies this, especially since so many big-box stores’ websites keep lying to me about what’s really in-stock. I still shop around and find that Amazon either beats or meets most deals, and since I’ve already paid for Prime I usually take advantage of the 2-day shipping for just pennies more than the lowest price e-tailer using UPS Ground from the Other Coast (ugh).
Often Amazon is just plain cheaper. I saved $40 on a child car seat and $30 on boots just this past month. This month it’s specialty computer cables that I know will arrive on time versus eBay’s wildly inconsistent sellers. That’s most of my Prime membership right there, and it was only February (I renew in January). The key here is not just comparison shopping, but to use camelcamelcamel to make sure you’re paying on an Amazon minima and not maxima. Amazon auto-pricing does CRAZY things when it gets down to the last item.
For auto parts, Rock Auto and Majestic Honda often beats Amazon as long as I don’t care about delivery time (OK for maintenance items), but Advance Auto can’t seem to measure up no matter what combination of promotions and discounts they offer. So I order from RA and MH and Amazon.
While not a deal changer, free movies on their streaming service also save me money versus rentals, buying DVD/Blu-Ray’s, or Xfinity pay per view charges. Prime’s free movie and show selection may not be huge, but young children often don’t care about which movie they see; they just want to see something new (after playing every DVD you have 20 times). Yes I do take the kids to the theater for first-run movies. It is an expensive but worthwhile experience, as long as you pick decent movies and don’t overdo it.
I totally understand that Prime may not be a good deal for everyone. Of course I’ll re-evaluate on each renewal. For now it is easy to quantify more than $99 of savings per year, and I’m not talking versus MSRP or even daily big box prices, I’m talking about more than $99 saved versus best deals from etailers and big box’s promotions. Of course I shop elsewhere and always have an eye out for a bargain. Nothing beats buying close-out toolboxes from Sears for 25-30% of list, even if the website says its out of stock. All my printers come from Office Depot closeouts for 20-25% of retail. I guess for me most big-box stores only exist for season-end closeouts or emergencies. Only the Home Centers get regular business from me, when something needs fixing now, it needs fixing now, and if you’re a homeowner, something needs fixing.
rob
I have had a Prime Membership for 7 years now, I do most of my shopping at Amazon and overall have had great success with their service and customer support 2nd to none. I received the email today and the good news was for me I have another year at the reduced rate WooHoo! I have shared my membership with a family member and also use the streaming service pretty regularly, in fact I dropped Netflix because I was using Amazon more.
Am I happy about the price increase, of course not. But this had been rumored for a while as their large shareholders felt they could make more money from it and should raise the price. As for the gas prices, I am not sure how many people work in a field that includes trucking but trucking companies have had fuel surcharges on their transportation fees for at least the last 8 years. So these charges have been out there fora while
But its me!
I have had Prime for several years now. Got it mostly to get Christmas gifts ordered one year, then stuck with it. The convenience of two-day delivery has never been all that important to me, as Amazon’s economy shipping always seemed to arrive wihthin a week, thanks to our central location, but the wife enjoys it. A little secret I learned is that if your package arrives late, Amazon will extend your Prime renewal date another month. I feel a little devious in using it, but it is what was promised.
The addition of streaming media was a welcome touch and something that helped keep me renewing. The selection is about par with Netflix for movies, and the wife does stream some paid movies from Amazon, which Prime makes easier and cheaper than DirecTV. The free book titles for the Kindle are hit or miss, but the wife also uses her Kindle for plenty of book orders from Amazon, so I guess we are stuck with Prime.
I have noticed that Amazon’s prices appear to have creeped up lately, leading me to order less hard goods when I can purchase at the same price locally (we pay sales tax to Amazon). I do wish Amazon offered a discount for skipping two-day delivery, but I would imagine that would complicate things. At $99, we will probably stick with it, but any higher and I will probably pass.
But its me!
I forgot to note that you need to contact Amazon (email is usually replied to within a few hours!) to request the extension of your Prime for delayed delivery.
mike
Was on the fence about this depending on what pricing was,but heck $20 is one less case of beer a year or something.
I will be continuing to use prime as we buy alot from amazon.
Greg Post
I wish Amazon Prime or Newegg would add instant manufacturer rebates as part of their subscription programs, that would be a bonus feature to these subscription programs that would really enhance the service and value.
RKA
Last week I ordered a toilet tank lever on Amazon. At first that seems kinda odd. I mean this is an item you need now, right? But the big box stores have plastic junk that will break again in a year. Nothing made of metal the last time I looked. But amazon has one made of metal…all metal according to the reviews! It can be here in two days (or less)! That’s not bad at all. $4 extra and I get it tomorrow if I wasn’t a cheap bastard. I’m finding I’m using Amazon more and more as a primary source of everything. That’s what they want, right? And the best part is I don’t have to waste my time running from store to store looking for something that isn’t there! Saves me gas too!
I love amazon dearly, but….
Now they set up a shipping center in my state and like many others I found myself paying sales tax. Surely Amazon has saved a ton on shipping costs by doing this? So now the large purchases are scrutinized more carefully and often I’ll shop elsewhere, but still online. Their prices have trended upwards as well. Still good, but not always so good. In some cases I’m paying more than the retail store, but I don’t have to drive out of my way to get the product, so it’s worth the convenience. Their subscribe and save program was good initially. Now I have to have 5 items in a monthly shipment to get the 15% off, otherwise it’s a paltry 5%. And many of those items are discontinued in a matter of months in favor of even larger quantities (who needs a 36 pack of air fresheners?). This is not helpful to me. I’m also stumbling across an increasing number of products excluded from Prime unless I meet a $25 order minimum. That’s annoying. The videos are a nice perk, but the selection isn’t that great and I don’t need them. If you asked me to pay extra for them, I would show you my cancelled Netflix account (the last and final time they chose to raise their rates on me).
I guess I’m questioning the value here. Most items seem to be shipping out of my local warehouse, so I suspect they would be here pretty quickly anyway? I still get the same prices without amazon prime. Same selection. Same one click ordering. Same reviews I have come to depend on.
I suspect their Prime members are their most loyal customers, but at some point they will start questioning the value of this program, as I am. Amazon does a lot of things right, but lately they have been making a series of decisions that have consistently not worked in the favor of the customer. Now they are about to serve up a slap in the face to their most loyal customers. If I was a shareholder, I wouldn’t be lighting candles and cutting cake right now, I’d be selling the stock and waiting to see what their prime membership numbers look like a year from now and how much that has impacted their revenue.
Otto
Got rid of Prime last year when they started collectng sales tax in TX. The added sales tax really curtailed my buying. Prime was ok but I was rarely in a hurry for the items I purchased so 2nd day shipping wasn’t that beneficial.
What’s more disappointing is that Amazon no longer offers price guarantees on the products they sell. If you buy a compressor for $200 and the price falls to $150 within 30 days you’re out of luck.
firefly
I am on the fence about this one as well. Personally I don’t mind the price increase but I also expect the level of service increase or better selection and prices. Amazon price used to be good. Nowadays their price is only ok. I am a good customer with very low return rates. With the price hike we can expect the return rate to increase as well. Anyway I’ll wait and see, as the price increase so is my expectation and a decrease in tolerance for everything else. Think of it as if I am paying $50 a night at a motel I can tolerate the fact that the sheet is looking less than stella. But if I am paying the premium for a 5 star hotels they can certainly expect to hear from me if the experience turn out to be less than ideal.
Javier
I got the same email recently, now that I read your article, I wonder if I renew before if they will give me the old price of $79. I think I will call tomorrow
For those of you thinking about the service, realize that it offers a video streaming service thats as good as or better than netflix. Thats the main reason I got it and at $79 a year its less than netflix a year at only about $6.58 a month vs netflix $7.99 a month. At $99 its $8.25 a month which is very close to netflix’s price but you get the unbeatable amazon prime shipping. Its not all about free 2 day shipping or discounts on 1 day shipping. Amazon prime also skips the $35 minimum threshold on items so you can buy plenty of items under $10 and still get free 2 day shipping
mike
Already commented above, But Javier brings up a good point for me I forgot to mention,the video streaming.
We have netflix and also have prime(Dont have cable tv). Netflix can be buggy at times and ive never had any issues with prime movies even streaming over wireless.
Plus with multiple little kids its nice to have choices for things they can watch too. especially on long trips in a car etc.
David
One reason I will continue to keep my Prime membership is that I (every prime member) is allowed to add family members (I believe up to 3) to share some of the Prime member benefits, mainly 2 day shipping. My daughter and son share my membership and we split the costs. The increase will only cost each of us $6.67 per year. Still well worth it since we buy so much on Amazon.
Stuart
You can share Prime membership benefits with up to (4) household members.
I believe that only the account holder can watch free Prime movies and TV shows, and that shared members only receive the free shipping benefit.
For a couple of years now I have shared my paid membership with my sister, parents, wife, and sister in law.
Tomas
I live in Washington State so I’ve been paying sales tax since the begining. At first I grumbled about it and tried to find other places to shop but here’s what I’ve come to find:
– Sometimes I can find other sites that are the same or a little cheaper than amazon, if I’m willing to wait the 5-7 days for free economy shipping I’ll save that 10%.
– Often though, I need/want the item faster and I’ll pay the extra few dollars to get it
– Even though Amazon is based here, there’s no rhyme or reason behind which distribution center I get. Occasionally Washington, often Nevada, sometime Tennessee. I think it just has more to do with which warehouse has it “in stock” so you may or may not get that item right away with regular shipping
mike
there’s a semi loophole to get prime for $79 for another year.
Gift yourself prime and set it to start when your current one expires. 😉
Toolfreak
Amazon can shove it.
This is as bad as the cable companies. You have to PAY and then pay some more, then pay pay pay again and again, and all the while they are making money from your being on the site and looking at all the ads, plus all the third party sellers who are paying fees just for being on the site.
Maybe if amazon didn’t abuse their workers, I could see paying for shipping, so they could pay their workers decent wages, too. But for them to continue to operate as they do AND expect people to keep forking over more money – no way.
I use amazon when they have the lowest price, and I can usually get over $35 of stuff to get free shipping, even if that means throwing in something to get over the threshold. Not as fast as 2-day shipping, sure, but if it’s an emergency, I’ll buy locally or use the offer for a free Prime trial that shows up every few months.
Unless you buy a LOT of stuff from Amazon, throwing away 100 bucks for shipping is crazy – and if you order THAT much stuff from Amazon, they should give you a Prime membership for free.
Steve Cox
You must have a better cable company than me, Amazon went 9 years with out a price increase, Cable increases priced every 6 months.
PWL
I have had a Prime membership for the past two years. My first year was wonderful. UPS or FedEx ground deliveries in 2 days with the price included in my Prime membership was well worth the $79. However, this past year Amazon changed over to using UPS SurePost or FedEx SmartPost for just about every delivery. The post office in my area is horrible. They stuff my office mail box with deliveries too big to fit instead of bringing it inside. If I wanted USPS to deliver my orders, I would have requested it. For $20 more, I would expect them to abandon this shoddy delivery service but they say they will continue it. For that, $99 is not worth it.