3 Signs You’re Throwing Money Away on Amazon Prime

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Have a Prime membership? Read on to see if it’s time to shed it. 

There are plenty of benefits to joining Amazon Prime. For $139 a year, you get access to unlimited free two-day shipping on orders of any size. You also get the option to try on clothing before you commit to buying it, as well as access to loads of digital content, from movies to music to TV series.

But given that living costs are still so elevated these days, the reality is that if you’re spending $139 a year on Prime, then it’s important to make sure you’re getting great value out of that subscription. If not, there are plenty of other bills that your $139 could go toward, like groceries, utilities, car payments, or your mortgage. Here are a few signs the money you’re spending on a Prime membership just isn’t worth parting with.

1. You don’t place orders on Amazon very frequently

If you’re someone who shops regularly on Amazon (say, two to three times a month or more), then it might be pretty easy to justify the cost of a Prime membership. But if you only place, say, one order a month, then a Prime membership may not be worth paying for.

Let’s say you place one Amazon order a month that doesn’t qualify for free shipping, but rather, you have to pay $7 per shipment. In that case, you’re spending $84 a year on shipping, which is considerably less than the cost of an annual Prime membership.

2. Most of your Amazon orders amount to $25 or more

If you find that the majority of your Amazon orders amount to $25 or more, then a Prime membership may not be worth it. That’s because orders of $25 or more ship for free on Amazon.

Granted, you won’t be eligible for free two-day shipping in that case. But if you don’t tend to need your Amazon items in a hurry, then you may want to consider letting go of your Prime membership and seeing how well you fare without it.

3. You never access the digital content that comes with a Prime membership

Free two-day shipping is often hailed as the primary benefit of joining Amazon Prime. But you can also benefit from your membership by accessing free content on the site, whether it’s music, books, or TV. But if you find that you never utilize that content, that’s another reason to consider canceling Prime and saving your money instead.

Don’t throw your money away

Amazon Prime is a program that makes sense for a lot of people. If you’re someone who’s too busy to shop at stores, then the convenience of a Prime membership might make your $139 fee worth paying. Similarly, if you live in a rural area without many stores, a Prime membership could give you better access to the things you need.

But if the above situations apply to you, then it may be time to consider dropping your Prime membership. You can always sign up again if you miss it, but this way, you won’t be spending money on something that isn’t giving you such great value.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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