Something to think about when everything is going on.
- Amazon has raised the price of its first membership significantly in 2022.
- That doesn’t mean members won’t see another increase down the pike.
- Evaluate your use of Prime to decide if it’s worth the cost to you.
Many people rely on Amazon Prime for everything from gifts to school supplies to household items. But Prime membership, while valuable in its own right, isn’t cheap these days.
In 2022, Amazon is raising the price of an annual Prime membership from $119 to $139. And this trick was enough to make some members jump ship.
If you stick with Amazon through the latest rate hike, you may be overpaying for a Prime membership. But when will you face another rate hike? Will Amazon try to raise prices in 2023?
The possibility of preparation
Many traders have seen their rates decrease due to inflation. And there’s no reason to think Amazon is an exception. So, it’s conceivable that the online retail giant might be looking to raise the price of Prime membership even though it has been going that route recently.
That said, two years of rate hikes in a row may not sit well with Prime members. And Amazon is well aware that the Prime program is not only a service that customers can sign up for but also benefits such as free shipping.
Walmart+, for example, offers similar benefits — and at a lower price than current Prime members. So it’s in Amazon’s best interest to try to keep Prime members, not drive them away by raising their fees.
Expect Prime prices to go up eventually
Amazon may not raise the price of Prime membership in 2023 as it did in 2022. But that doesn’t mean Prime prices won’t go up at some point. If it doesn’t happen this year, for example, it could go up in 2024. That’s a good reason to regularly evaluate your Prime membership and make sure you’re really getting the most value out of it.
If you use Amazon Prime several times a week to order discounted items, it’s probably worth keeping your Prime membership even if it costs $10, $15, or $20 more than it does now. But if you only place Prime orders once in a while, it might not be worth keeping your membership — especially if it becomes more expensive.
In fact, you don’t have to wait for Amazon Prime prices to go up to value your membership. Instead, ask yourself every few months if Prime is worth paying for. If not, take it out and use that money for something else, whether it’s paying for groceries or topping up your account.
Amazon Prime members have tons of perks, from the option to try on clothes for free to tons of digital content. But if you find that you just don’t get the most out of them, there’s no point in spending money on something that only gives you mediocre value.
Amazon may keep the annual membership price at $139 for a while. But that doesn’t automatically make it good for you.
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