This is How Amazon Prime Makes Money




amazon prime delivery truck on street

Amazon is, without a doubt, one of the biggest companies in the United States, and now the world. Even if you haven’t ordered directly from Amazon, there’s a likely chance that the products you buy and the people you meet go through the shipping service. 

Throughout the years, Amazon has branched out from simply being an e-commerce site that distributes products from all over the country. Now, Amazon has its own video streaming service called Amazon Prime video, and even a gaming leg called Amazon Prime Gaming. 

But wait: what is Amazon Prime? What makes it different from the Amazon we’re all familiar with now? How does Amazon Prime make money?

This article will answer these questions and better understand how Amazon continues to earn money through Amazon Prime subscriptions.

How does Amazon Prime make money?

Since Amazon Prime is a subscription service, most of the profits that Amazon makes are through its subscribers. In 2021, Amazon Prime earned $30 billion in revenue from subscriptions alone. Former CEO Jeff Bezos also reported that 200 million people currently have Amazon Prime subscriptions, as of 2021. 

As of 2022, Amazon Prime subscriptions are priced at $14.99 per month or $139 per year. Those who are only interested in subscribing to Amazon Prime Video, Amazon’s exclusive TV and film streaming service, can choose to only pay $8.99 per month or $108 per year. 

With the rise in demand for streaming services and the benefits of online shopping, it is highly possible for Amazon Prime to earn more than it did in the previous year.

Amazon Prime subscriptions are available in 23 countries, as of October 2021. Besides the United States, this membership is also available in countries such as Canada, China, Japan, Mexico, Singapore, Spain, the UK, and more. 

What is Amazon Prime?

Simply put, Amazon Prime is a premium subscription service that provides perks for shipping and entertainment services.

 Usually, when you subscribe to a particular company’s exclusive content or benefits, it’s only for a particular type of service. For Netflix or Hulu, your subscription would only be applicable for their available TV shows and films. For food services or restaurants, it’s exclusive only for their products. 

For Amazon Prime, however, subscribers get benefits for all of Amazon Prime’s platforms, which include Amazon’s shipping, food, streaming, and entertainment services, 

What are the perks of using Amazon Prime?

As mentioned, there are all kinds of benefits to using Amazon Prime. If you’re an avid user of Amazon’s platforms, getting an Amazon Prime subscription is a good investment. Here are its benefits:

  1. For shipping and product discounts:
  • Free two-day shipping or same-day delivery for selected products on Amazon
  • For selected pre-order items, Free Release-Date Delivery on Amazon
  1. For Amazon Prime Video
  • Amazon Prime subscribers get access to all Amazon Prime Video TV shows, films, and releases. 
  1. For Amazon Music Prime and Amazon Music Unlimited
  • Amazon Prime subscribers get unlimited access to Prime Playlists. This features almost 2 million songs.
  • Amazon Prime subscribers are given discounts for Amazon Music Unlimited’s subscription service. 
  1. Amazon Prime Gaming
  • Amazon Prime members get access to free games and exclusive in-game content.
  • Amazon Prime members are granted one free channel subscription to any content creator every month.
  1. Shopping
  • For groceries: Whole Foods Market gives Amazon Prime members exclusive discounts, as well as two-hour delivery for select cities in the United States.
  • Amazon Prime subscribers with the Amazon Prime Rewards Visa Signature Card get 5% back on all of their Whole Foods Market purchases
  • You can save money on your prescriptions and medications with Rx Savings, which provides discounts for over 60,000 pharmacies, including Amazon Pharmacy
  • There are also other perks with affiliated businesses like Amazon Fresh, Amazon Elements, and Prime Try Before You Buy

How to get an Amazon Prime subscription?

As of 2022, Amazon Prime is available in 23 countries. Check if your country is included in this list.

You can create your Amazon Prime account using this link. For new users, you can avail yourself of a 30-day free trial to explore and get a feel for what it’s like to have a Prime subscription. To avail of an Amazon Prime plan, you will need to use a credit card. 

There are different plans that you can avail from:

  • Regular monthly plan: $14.99 after your trial
  • Regular annual plan: $139 after your trial
  • Student monthly plan: $7.49 after your trial. This is 50% off the regular price for an Amazon Prime subscription 
  • Monthly plan for those who are qualified for government assistance: $6.99 after your trial

You can also choose to share your membership benefits using Amazon Household, where you can pick another adult to share your account with. This is not applicable to student plan users. 

Like other companies that provide entertainment and shopping services, Amazon has joined the wave in providing subscriptions for their loyal customers. By integrating all kinds of benefits for different platforms, users all over the world can get a once-in-a-blue-moon kind of deal. 

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