It seems like every company is ending its subscription benefits. From Netflix to YouTube TV, the era of shared streaming and shopping accounts is far from over. This week, Amazon fell in line with other tech companies, shocking users when it announced it is ending the Prime Invitee Program, which allowed Prime members to extend free shipping benefits to people living outside of their household. The Prime Invitee program will officially end on October 1. Those impacted will have to sign up for their own Prime membership.
I am one of those impacted by this decision. As a single woman living on her own, I have to keep my monthly subscription costs low. For years, I've used Prime benefits from my parents' account – free delivery, quick turnarounds on orders, and easy returns. But, this announcement has me seriously considering turning away from Amazon at last.
Why does this matter?
© AFP via Getty ImagesIn 2005, Amazon launched Prime. The original program cost users $79 per year and offered unlimited two-day shipping on eligible items. Since then, Prime has become something of a public good. Per Statista, there are 200 million Prime members worldwide, with 180 million Prime members in the United States. But, while millions of users are already enrolled in Prime, there are millions more who benefit from free shipping.
The change could impact those Amazon customers who have used Prime shipping without having a separate subscription. Now, those customers will be required to pay the monthly subscription costs if they want the Prime shipping benefits. According to The Associated Press, Amazon is offering a discounted membership rate of $14.99 for one year, before increasing to $14.99 per month/ The offer starts on Friday and runs until December 31.
© Getty ImagesSo who will this impact really? Faiza Aijaz, the co-founder of Ecazon E-commerce Solutions, told HELLO!: "Amazon ending the Prime Invitee program is a clear revenue play: fewer free riders, more paying members. This means higher friction for roommate households or gift recipients who were piggybacking. Amazon is dangling a discounted solo membership to soften the blow, but the message is clear, pay up or lose the perks."
© NurPhoto via Getty ImagesFaizia also explained that in the past few months, Amazon has been normalizing small return fees, which chips away at the old promise of unlimited free returns. Consumers tend to remember return pain more than free shipping ease, so this change may reduce some of the impulse buying Prime was built on.
While Amazon is changing its benefits structure, many consumers may turn to Target or Walmart for their shopping needs. Fazia explained the conflicting shopping decisions to HELLO!: "As Amazon trims perks and adds friction, Walmart's real-world savings pitch on weekly essentials becomes more compelling for suburban families who care less about Prime Video and more about groceries and gas. The likely outcome is not mass defections but more households splitting loyalty between Amazon and Walmart."
© NurPhoto via Getty ImagesAs Amazon members across the country face this change, only time will tell who they give their loyalty to. I, for one, will be cancelling my membership and shopping local instead.
