Free 2-day shipping with Amazon Prime [ARTICLE]
One of the biggest frustrations with consumers shopping online is hidden shipping costs. Just when you think you’ve found a great deal online, you add the item to your shopping cart only to checkout and discover it will cost $14 to ship the item to you. Not much of a savings after all.
Amazon.com improved this several years ago when they introduced free super saver shipping for purchases totaling $25 or more. While this was a big step toward eliminating consumer’s perception of getting deceived by low prices and high shipping charges, it still had its limitations. For starters, the shipping speed wasn’t exactly something to write home about. Amazon.com even states on its web site:
Please note that your order may take an additional 3 to 5 business days to ship out from our fulfillment center(s). Transit time for Super Saver Shipping orders is 5 to 9 business days after shipping.
Additionally, super saver shipping always requires you to come up with at least $25 of merchandise. Not very helpful when you just want to buy a new CD or DVD neither of which add up to anywhere near $25.
Amazon Prime
Amazon.com addressed these shortcomings of free super saver shipping with its Amazon Prime program. Amazon Prime is a membership-based program with a price tag of $79/year. With this paid membership, members are entitled to free UPS two-day shipping on any order with no minimum purchasing requirements. It may seem like a lot to pay up front but look how easily you can recoup your money if you ordered just one CD per month for a year:
| Shipping Comparison | Shipping Charges | Purchases | Subtotal | Annual Fee | Total |
|---|---|---|---|---|---|
| Standard 2-day | $6.98 | 12 | $83.76 | $0.00 | $83.76 |
| Amazon Prime 2-day | $0.00 | 12 | $0.00 | $79.00 | $79.00 |
Now imagine if you ordered more than just a handful of CDs each year. That’s when the savings really pile up.
Other benefits
Amazon Prime memberships also include other benefits beyond the free 2-day UPS shipping such as:
- Upgrades to 1-day (overnight) UPS shipping for $3.99 per item.
- Sharing your membership with up to four members in the same household.
- Members-only 1-click settings for free 2-day or upgraded 1-day shipping.
- Shipping to any address in the continental US, not just your own address—perfect for shipping those birthday and holiday gifts to friends and family.
Even with all of the advantages of an Amazon Prime membership, there are a few things to watch out for. Namely:
- Items must be sold by Amazon.com or third-party merchants participating in the program. This means not every item on the Amazon.com web site qualifies for Amazon Prime shipping.
- Items must be shipped to an address within the continental US.
Why buy online with Amazon Prime?
Remember, the total savings from using Amazon Prime don’t just come from the free shipping. Amazon.com generally offers lower prices than their brick and mortar counterparts. Furthermore, Amazon.com does not charge sales tax on your purchases.1
Here’s a comparison for an iPod Touch 16GB at Best Buy and Amazon.com using an assumed sales tax rate of 7%:
| iPod Touch 16GB | Price | Sales Tax | Shipping | Total |
|---|---|---|---|---|
| Amazon Prime | $379.99 | $0.00 | $0.00 | $379.99 |
| Best Buy | $399.99 | $30.00 | $0.00 | $429.99 |
Free for 30 days
Still not convinced? Take Amazon Prime for a free one month test drive.
1 Please consult your accountant or tax advisor to see whether or not you have to report your Internet purchases.
