Before you enjoy the first day, find out if Amazon Prime is worth it

Prime Day Amazon's exclusive annual shopping, is a period of about 30 hours during which prices are reduced on everything from technology to the home. For early members, the anticipation surrounding the first day is like black Friday, cybernetic Monday, Christmas, Hanukkah and the National Margarita Day but members Amazon Prime in really benefit. at the end? Depending on your buying habits, Amazon Prime is either a money-saving boon or a delicate tool designed to make you spend too much. And every time Prime Day arrives – especially after the recent jump of $ 20 to $ 119 a year – this raises the question, is Amazon Prime worth it?

With Amazon's custom reporting feature, you can find out if it's a good deal for you.

According to the Consumer Intelligence Research Partners research firm, it is estimated ] 90 million Amazon Prime members, representing 63 percent of US customers Amazon, Land Marketing reports.

Non-Prime members spend about $ 700 a year on Amazon, while primary users spend more than twice as much: $ 1,700 a year.

Unfortunately for my bank balance, I'm no exception.

By visiting Order History Reports Page and downloading some custom reports, I was able to review my Amazon buying habits with details painful. For example, I discovered that in 2013, I bought 12 items and spent only $ 154.49. Not bad. Five years later, however, I spent $ 2,070 over 12 months. Just another pawn in the Prime game.

The increase in member spending probably has a lot to do with the free two-day delivery on a growing number of eligible Prime products; for people who already pay Premium, it is usually better to buy products via Amazon compared to other retailers who charge shipping costs.

But that does not mean that your membership in Prime is a wise buy in the set. And is there a deeper psychological question at stake?

"The reason Amazon is willing to subsidize the two-day free shipping on everything is that the company knows members" Alexander Lowry [19659002] Professor of Finance at Gordon College and Director of the Master's Program in School Science in Financial Finance, said: "The initial nature of paying for a full year of prime This may give you some feeling that you need to get your money's worth, which can lead to impulsive purchases of small items simply because it's easier than going to the store and it's free, "he said. he says.

"And it should be noted that Amazon is not always the best deal," he added.You can use a browser plug-in such as Wikibuy to automatically check prices cheaper than those in Amazon. The catch? "These prices me expensive ns almost always mean a slower expedition. "

But free shipping is only one of the many benefits offered by Amazon Prime. And by comparing your use of Amazon with the value of these benefits, you can determine if you come forward on the membership fee.

Follow these guidelines, based on our analysis of benefits included with a principal member:

Amazon Prime is worth it if

• You make the majority of your purchases at Amazon
• You place fewer orders regularly $ 25
• You live in or near a big city
• You mainly rely on Amazon for streaming video, audio, books and games
• You have the Amazon credit card rewards and still pay the balance in full

Amazon Prime is not worth if

• You place orders less than twice a month, on average
• You
• You do not live near a large city ​​
• You are also subscribing to other streaming services such as Netflix, Hulu and Spotify
• You do not earn rewards on purchases or you carry a balance from month to month

If you are curious abo Read the following …

JPMorgan analysts have recently encrypted the biggest benefits of Amazon Prime to determine how much they are worth. And the results are impressive $ 784 a year as reported by Business Insider.

But spending more to save more is not a real savings strategy. And JPMorgan has good reason to value this service: the Amazon Rewards Visa – a credit card for Amazon customers, with additional benefits for Premium members – is offered by JPMorgan Chase.

According to the analysis of JPMorgan Chase, the estimated value of these Prime benefits, and a look at whether they are worth it.

1. Free two-day, one-day and one-day shipping (value: $ 125)

For: Being able to have to little Nearly everything that is shipped to your door within two days is a major convenience and one of the biggest draws of Amazon Prime. Some products are even eligible for free delivery from one day to one day. The analysis of JPMorgan concludes that this alone is worth more than the cost of membership

Cons: Unfortunately, not all purchases qualify for the expedition Prime . Even among those who do, you have to order often enough to justify the initial cost. For example, if you pay the annual fee and then place a Free Bonus Order per month, shipping costs rise to just under $ 10 per order, which is more than what non-members pay. . And unfortunately, the two-day expedition is simply not possible if you live in a rural location.

Amazon has made it easier for non-premium members to score free shipping as well; orders totaling $ 25 or more for eligible items are shipped free of charge, but non-major members must wait five to eight days before receiving their items. That convenience justifies the annual fee of $ 119 is yours.

2. Prime Now (value: $ 180)

The Advantages: A competitive application service such as Instacart and Door Dash, Prime Now allows you to get grocery and restaurant orders, often in two hours or less. You do not have to be at home to accept delivery unless it includes alcohol.

Disadvantages: Shipping fees are charged for orders under $ 35 and deliveries of one hour extra. In addition, you must tip your delivery person, which means that a simple grocery order can become very expensive. Not to mention that the service is available only in thirty major American cities, which means that many Premier members can not take advantage of this advantage.

3. Prime Video ($ 120 value)

For: In addition to giving customers free access to thousands of movies and TV shows, Amazon produced a ton of original content binge-worthy . Amazon's video library is larger than Netflix, offering four times more movies

Cons: Although the library is larger, Amazon was criticized for quality overall selections . It is common for Prime Video users to subscribe to other streaming services, not replace them, in which case you do not save money.

4. Prime Music ($ 60 value)

For: Prime Music syncs with Echo products, so you can order Alexa to play your favorite tracks as long as you hear.

Cons: JPMorgan has rated Prime Music at about half of what similar services cost such as Apple Music, Tidal and Spotify Premium. In fact, the estimated value has decreased since last year. With a relatively small library of 2 million songs, Prime Music can not really compete, and you can already pay for better service.

5. Prime Photos ($ 24 value)

For: Amazon offers free and unlimited photo storage via Prime Photos, which means that standard photo files will not be taken into account in your cloud storage.

Disadvantages: As with any cloud storage platform, there is always the risk that someone may hack into your account and access your images.

6. Kindle Owners Loan Library (Value: $ 108)

For: JPMorgan has bundled the Kindle Loan Library with some other book-related services, including Amazon First Reads and Prime Reading. One of the biggest benefits is that Kindle users can download a book each month.

Cons: This offer requires to own a Kindle tablet, an additional upfront cost.

7. Audible Channels for Premier ($ 59 value)

For: Amazon offers short commercial-free podcasts, from comedy to documentary-style narration. Anyone sharing an Amazon home with a Prime or Audible member may also benefit from this benefit.

Disadvantages: There is no disadvantage to this service per se, although listening to podcasts is usually free in the first place.

8. Twitch Prime (Value: $ 108)

For: One of the newest additions to the Prime Pool, Twitch Prime offers player-centric extras such as loot, ad-free viewing, discounts, freebies and more.

Cons: Only players will appreciate this benefit. And Twitch Prime is clearly designed to encourage more expense by offering benefits such as exclusive pre-order discounts.

9. Bonus: Amazon Rewards Visa (value: varies)

For: It was not included in the JPMorgan analysis, but put purchases Bonus on the Amazon Rewards Card is a way to maximize your membership. The card offers a cash back 5% on purchases from Amazon and Whole Foods for primary members or 3% back for non-privileged buyers. It rewards 2 percent back in restaurants, gas stations and pharmacies and 1 percent on everything else.

Against: K Do not forget that you will have to shell out $ 2,380 in Prime purchases each year to reach the cost of a top notch membership. And if you have a balance, you can easily cancel those savings and end up spending more than non-core customers for the same items .

Premium for saving money and falling prey to its calculated marking practices . In the end, if Prime works for you or against you "go down your shopping habits and how much you end up using it," Lowry said.