Here’s the truth: That Prime membership on your credit card statement might not be the money-saver you think it is. But then again, it might be. GOBankingRates did a deep dive to figure out if shopping on Amazon is really cheaper.
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Here’s the real story on Amazon’s pricing — and where your wallet takes the biggest hit.
Breaking Down Prime’s Real Cost
At $139 yearly (or $14.99 monthly), Prime membership eats into any potential savings before you’ve clicked “buy now.” You’ll need at least 14 orders annually just to break even on shipping costs — and that’s assuming you’d pay for shipping elsewhere.
Where Amazon Actually Saves You Money
Electronics and tech accessories tend to be Amazon’s sweet spot, with prices regularly beating brick-and-mortar stores by 20-30% — assuming you can dodge the counterfeits lurking in the third-party marketplace.
Paper products, cleaning supplies and personal care items are typically cheaper through Amazon’s Subscribe & Save program — if you’re organized enough to predict your needs. The savings can hit 15% with five or more subscriptions, but mess up your timing and you’ll drown in paper towels.
Parents buying diapers and wipes can save about $15-20 monthly through Subscribe & Save — enough for a few lattes to survive those sleepless nights. Just watch out for better in-store sales at Target on baby clothes and gear.
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Where Your Local Stores Still Win
Your neighborhood grocery store still beats Amazon’s prices by 10-15% on weekly deals, especially on fresh food. Even with Prime discounts, Amazon’s grocery prices rarely match what you’ll find in the sale aisle at your local market.
Home improvement stores like Home Depot and Lowe’s typically match or beat Amazon’s prices — plus you won’t throw your back out returning a defective power tool through the mail.
The Hidden Costs Adding Up
Several sneaky expenses can eat into your supposed Amazon savings:
- Those “free” returns sometimes aren’t so free
- Base prices often creep higher to cover shipping costs
- Late-night one-click ordering leads to impulse buys
- The urge to add items to hit free shipping thresholds
Smart Shopping Strategies
Price comparison tools like CamelCamelCamel have become essential for serious Amazon shoppers — they’ll tell you if that “deal” is really as good as it seems. Consider splitting Prime with family members (Amazon allows up to six) to cut the membership cost.
The Bottom Line
Amazon isn’t automatically cheaper — it depends entirely on what and how often you shop. Heavy Prime users who maximize multiple services might see real savings, but occasional shoppers could be throwing money away on that membership fee. Track your actual spending for a few months before convincing yourself Prime is worth it.
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This article originally appeared on GOBankingRates.com: Is Shopping on Amazon Really Cheaper?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
