قالب وردپرس درنا توس
Home / Business / Is the price of Amazon Prime really worth $ 800 for $ 119?

Is the price of Amazon Prime really worth $ 800 for $ 119?



Amazon is today releasing Whole Foods Rebate to its Prime Members part of the benefits that, according to an analysis, amount to nearly $ 800 a year.

That's a great value, considering that Prime membership currently costs $ 119 a year. But households want to feel like they're getting their money's worth, especially since Amazon (AMZN) has raised the annual price of $ 99 earlier this month.

Most consumers sign up for Prime for the free two-day delivery, but it offers a variety of other perks that are less well-known. According to Dougmuth Chase (JPM) analysts Doug Anmuth and Christopher Horvers, who researched the Amazon Prime offerings in a May research report, free shipping alone is $ 1

25 a year.

However, the full value of prime membership can not be shared by some consumers, especially those living in rural areas. Although Amazon is expanding its fulfillment centers to accelerate delivery to other corners of the US, some rural customers complain about unreliable two-day deliveries, said Lindsay Sakraida, Director Content Marketing at DealNews.

In addition, advanced delivery services such as Prime Now are only available in large cities. Forget it when you're in Lincoln, Nebraska.

"Choosing whether Amazon Prime is worth the cost depends very much on where you are in the country," Sakraida said. "For city dwellers, prime shipping and perks are usually a lot sweeter." On Wednesday, Amazon said it would prime its rebate on all of its Whole Foods Market 365 stores, adding 121 more Whole Foods locations in 12 states. Prime members receive a 10 percent discount on products and discounts on other products. But this discount is only useful if you live near a Whole Foods location.

While the prime service was easier to justify than just $ 99 a year, even at the higher price Sakraida could be considered a good deal for some consumers who desire convenience.

Here are the annual values ​​of Prime's individual perks, which, according to JPMorgan, total $ 784 per year.

Unlimited Two Day Free Shipping: $ 125

Last year, Amazon doubled its 100 million free shipping product selections and expanded its geographic reach from one-day and daily services to 8,000 US cities, JP Morgan's Anmuth wrote.

"We believe that there are no comparable unlimited free shipping deals on a massive scale, with Amazon's large and growing infrastructure investments serving as a significant barrier to entry," wrote Anmuth.

Prime Now Delivery: $ 180

Prime Now is available in more than 30 major US cities such as New York and Los Angeles, but millions of Amazon customers living outside of these major cities are out of luck , The delivery service offers an unlimited, free two-hour delivery to thousands of items, and Amazon adds Whole Foods delivery to the product. Anmuth wrote that he believes that Amazon will add more cities over time.

Prime Video: $ 120

Streaming addicts probably know Prime Video, a rival to Netflix (NFLX) and Hulu. According to JPMorgan, Amazon is expected to spend around $ 5 billion on content in 2018, compared to $ 4.5 billion a year ago. The service offers unlimited streaming of movies and TV series from major networks and studios as well as prime originals like "The Marvelous Mrs. Maisel".

As Netflix has more offerings, JPMorgan estimates the video portion of Prime at $ 9.99 per month or $ 1 less than Netflix's standard plan.

Prime Music: $ 60

Prime Music has a value of about $ 4.99 per month or $ 60 per year, which is comparable to Pandora Plus, JP Morgan said. It does not have such a huge library like rivals like Apple Music or Spotify Premium that charge about $ 10 a month.

Prime Music offers ad-free streaming for about 2 million songs, though Amazon Music Unlimited – which costs $ 7.99 a month for Prime members – has a much larger library of tens of millions of songs, JPMorgan said.

Prime Photos: $ 24

According to JPMorgan, Prime Photos offers unlimited unlimited storage of photos worth $ 1.99 a month. A comparable service is Google Photos, which charges $ 1.99 a month for storing photos and videos, even though the quality is compressed, JPMorgan said.

Kindle Owner Lending Library: $ 108

The Kindle Owner Lending Library and a number of other book-related services, such as Amazon First Read, are worth $ 8.99 per month, according to JPMorgan. The Kindle Owner Lending Library allows Prime members to download a book every calendar month, even though members must own a Kindle or Fire device.

Amazon also offers the Kindle First service – a free Kindle book per month for Prime members from a smaller selection of books chosen by Amazon's editors.

Audible Channels: $ 59

Audible's answer to podcasts can be found on Audible Channels, a service that provides ad-free short-form audio programming. It also includes a rotating selection of about 50 audiobooks on Audible. One of the current selections is, for example, the non-fiction book "H is for Hawk" by Helen MacDonald. The value is $ 4.95 per month, JPMorgan said.

Twitch Prime: $ 108

Twitch, the service that allows you to see gamers playing, is worth about $ 4.99 a month, according to JPMorgan. It offers Prime members game content, exclusive emoticons and other extras.


Source link