Amazon Prime holdouts have a new reason to consider giving in: A Prime membership may soon score you discounts and other rewards at Whole Foods Market stores.
“It’s been our mission for 39 years at Whole Foods Market to bring the highest quality food to our customers,” said John Mackey, Whole Foods Market co-founder and CEO, in a statement released on Aug. 24. “By working together with Amazon and integrating in several key areas, we can lower prices and double down on that mission and reach more people with Whole Foods Market’s high-quality, natural and organic food.”
Indeed, on Aug. 28, Amazon and Whole Foods closed the former company’s acquisition of the latter and solidified their new relationship by rolling out lower prices on select items in stores. They also began selling a range of Whole Foods products on Amazon’s online marketplace, with many items only available to Prime members.
The next steps for merging the two businesses, per their statement, are to establish Amazon’s Prime membership as the customer rewards program for Whole Foods and to introduce Amazon lockers in select stores. While details about Prime-Whole Foods benefits have yet to be revealed, savings stand to be relatively significant. Already, in-store prices on items, including certain organic bananas, avocados and eggs, have been cut for all Whole Foods shoppers by as much as 43 percent, according to Bloomberg. Prime members are due to receive additional “special savings and other in-store benefits,” according to the companies’ joint statement.
[See: 20 Tips for Saving Money at the Grocery Store.]
Such deals might not change the minds of budget-conscious consumers. “Although Whole Foods’ price cuts have been significant from a percentage standpoint and are competitive for organic items, the final prices may not be low enough to attract price-sensitive shoppers,” says Stephanie Nelson of free grocery deals website CouponMom.com. She notes that Whole Foods cut the price of organic apples, for example, by 33 percent from $2.99 a pound to $1.99 a pound, but shoppers can find non-organic apples for far less elsewhere.
Customers of other stores might still nab some savings from the merger. “If other supermarkets and discount stores compete [in response to Amazon’s price cuts], shoppers can save significantly on necessary basics like milk, produce, eggs and common staples,” Nelson says.
For fans of Whole Foods or Amazon Prime, however, this new relationship is exciting. “I think the $99 fee you pay for an Amazon Prime membership is already fair because there are so many perks,” says Lisa Koivu, founder of budget shopping blog ShopGirlDaily.com and former U.S. News My Money contributor. “Adding the Whole Foods discount to a Prime membership — depending on how large of a discount we are really talking about — could really be the icing on the cake.”
If you’re still on the fence about Prime, how can you determine whether a membership is worth it for you?
[See: 12 Shopping Tricks to Keep You Under Budget.]
Consider your shopping habits. The main attraction for most Prime members is the free two-day (or faster) shipping on many items. If you’re already an Amazon shopper and prone to making last-minute purchases that require expedited shipping (or if you just have little patience), Prime membership may be well worth it for this benefit alone. And if you are in no rush to get your purchases, you can opt for slower deliveries and take a credit that you can put toward buying certain e-books, digital music, videos and other items.
“Before investing in a Prime membership, people should first consider how often they order from Amazon, and whether or not free two-day shipping for a year is something worth paying extra to receive,” Koivu says. During the last year of her membership, she’s personally saved $240 in shipping fees, more than making up for the $99 annual cost for Prime.
As a parent of a toddler and an infant, Koivu also enjoys Amazon’s Subscribe and Save program. The way it works is you select certain items to automatically purchase and ship to yourself on a regular schedule. The quasi-commitment (you can cancel anytime) often rewards you with discounts, but the big draw for many is what it can save you in time and effort. “Every month, like clockwork, we get boxes of diapers and wipes delivered to our door, along with other necessities like coffee, shampoo and dog treats,” Koivu says. “These are all things we go through quickly, but we now don’t have to think about purchasing on our weekly trips to the store.”
[See: 10 Money-Saving Websites to Check Before Shopping.]
Compare prices to see if Amazon already offers savings on some standard items on your shopping list — and then watch for whether those promised Whole Foods discounts are worthwhile for you. “With free shipping, you can justify online grocery shopping, especially when you shop Amazon’s rock-bottom deals and combine them with Amazon’s online grocery coupons,” Nelson says. “Amazon runs great deals on bulky staples like bath tissue, paper towels, diapers, et cetera.”
Keep in mind, though, that despite Amazon’s reputation as a price leader, it doesn’t have the cheapest price on absolutely everything. So you do have to shop around — which is at least easier to do online. “Online grocery shopping can be a bargain when you shop deals selectively,” Nelson says. “It also keeps you out of the store, which reduces impulse purchases.”
Think about whether you’ll enjoy other Prime benefits, including unlimited video and music streaming and photo storage, one free e-book a month, a free six-month subscription to The Washington Post and more. Some might even help you save money in other areas. For example, if the viewing selections on Prime Video satisfy, you might consider nixing your cable subscription.
Amazon Reload, a program just introduced in June, is particularly appealing to get more bang for your buck. It gives Prime members a 2 percent credit on top of whatever amount they add to their gift card balance. For example, if you load your Amazon account with $100, using a checking account, your balance will go up to $102. You just have to supply your checking account information, a debit card and your driver’s license. The program is offered for a limited time only.
Not quite convinced to pony up for a Prime membership? You may just wait and see whether the Whole Foods discounts come to fruition and what other big changes Amazon might come up with. You certainly won’t be alone. “It will be interesting to watch, as we know, every time Amazon touches a segment, they transform it,” Nelson says.
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Should You Finally Get Amazon Prime? originally appeared on usnews.com
