I signed up for Amazon prime last year after realizing how much money I could probably save on free shipping. It costs approximately $78 a year, and anything that is eligible for Amazon Prime has free 2-day shipping. Heck, free shipping would be worth it by itself in the end, but to have 2-day shipping was an awesome bonus.
Out of all of my purchases I made in 2012, I did an estimated shipping cost based off of how many purchases I made in 2011 and the average shipping cost there based on the amount of purchases.
What I calculated is that I would have spent $728 in shipping as opposed to my $78 I pay for Amazon prime, and that’s with regular shipping.
Sure I still have to pay shipping on a few items here and there that don’t qualify for Amazon Prime, but for the most part, this is a sound investment. I highly recommend
- Crystal Groves, Owner/Editor of The Money Drain
Always check what services companies offer that might save you money. Even if there is an initial investment, it could pay off beyond that in the long run. Many companies like Amazon, Zappos, or small companies offer great deals on things like shipping.
Alternatively, you can read The Simple Dollars argument against Amazon Prime savings.