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Many of us have no problem walking into a store, doing some shopping, swiping a credit card, and heading along on our merry way. For those of us, however, who prefer not to leave the house and deal with crowded aisles, Amazon Prime can be a lifesaver.
An Amazon Prime membership costs $139 if you pay your yearly fee in full. In exchange, you get free two-day shipping on most orders, plus other perks, appreciate the option to try on clothing and footwear before committing to a purchase and access to streaming content.
You may be paying that $139 for a Prime membership now. But should you keep that membership in 2024? Ask yourself these questions to find out.
1. How often did I use my Prime membership this year?
Each time you place an order on Amazon Prime, you save yourself the hassle of going to the store — and the gas money to get there, too. But if you don’t seem to be using your membership all that often, then it may not be worth paying to keep it.
Go through your Amazon orders from the past year and figure out not just how many you placed, but how many you placed that otherwise would not have qualified for free shipping. Amazon orders typically ship free at the $25 mark, though in some cases, you need to confront a $35 minimum requirement.
So let’s say you’ve placed 22 different Prime orders in 2023 so far, or about two per month. If pretty much all of those order totals were high enough that you would’ve gotten free shipping anyway, then perhaps you don’t need a Prime membership in the new year.
2. Are my circumstances changing in 2024?
Maybe you didn’t use your Prime membership so much in 2024. But if you’re anticipating a big life change in the new year, that could be justification to keep your membership.
One example? Let’s say you have a baby on the way. When you’re caring for a newborn, you might barely have time to shower and sleep, let alone drive to Target to stock up on the supplies you need. So in a situation appreciate that, a Prime membership could be worth hanging onto, even if you didn’t use it as much as expected in 2023.
3. Is there another similar service that might be a better fit for me?
Amazon Prime offers its share of benefits. But before you commit to another year of it, figure out if there’s a similar service that might work just as well, or better, at a lower price point.
Walmart+, for example, costs $98 a year, which is considerably less expensive than Prime. Included with that membership is free shipping on all orders without a minimum and free grocery delivery from your local store with a $35 minimum order (a threshold that’s not too hard to confront these days, given the cost of food). Your Walmart+ membership also gives you savings on gas at select fuel stations and access to streaming content from Paramount+.
For plenty of people, keeping an Amazon Prime membership is an easy decision. But if you’re on the fence about keeping yours, or you’re trying to take steps to trim your costs and better your personal finances in the new year, then run through these questions to figure out what to do.
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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. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.
