Technologies

Which perks do — and don’t — come with an Amazon Prime subscription? What to know

If you’re an Amazon Prime member, you can get everything from free grocery deliveries to discounts on prescription medicine.

The cost of convenience turns out to be $119 a year. That’s how much an Amazon Prime annual subscription costs. (Otherwise, you pay $13 a month. And students get a discount.) The benefits are definitely worth paying for. Of course, you’re probably familiar with Amazon’s free two-day shipping option. But depending on where you live, you can also get free one-day delivery, same-day delivery and even two-hour delivery. The delivery perks may alone be enough reason to become an Amazon Prime member, but the benefits don’t end there.

As an Amazon Prime member, you can get discounts at Whole Foods, lower prices on prescription medicine, free grocery deliveries and access Prime Video and Prime Music, where you can watch the latest movies or listen to new albums.

In the guide below, we’ll show you the best Prime membership benefits that you may not know about. And check out these Black Friday deals before the big shopping day.

1. Exclusive Whole Foods discounts

Although Whole Foods deliveries now come with a $10 charge (they used to be free for members), there are other ways to save on organic fruits and vegetables. There are also free 1-hour pickup windows depending on your location — just remember to check in with the Amazon app to see if you need to enter the store.

Some other Whole Food perks for Prime members are still around. Blue tags indicate sales exclusive to Prime members, while yellow tags mean an extra 10% off of an item already on sale. This gets you discounts on weekly bestsellers, including produce, packaged goods and beauty products, but note that it excludes alcohol.

You can also use the Whole Foods Market app at checkout to get exclusive Prime discounts on select products. The few cents saved on items may seem insignificant individually, but savings do add up in the end. But there are other Amazon grocery delivery options if you don’t want to pay the extra fee.

2. Free Amazon Fresh delivery

Another grocery delivery option for Prime members is Amazon Fresh. You can restock your pantry directly from Amazon. But instead of paying $10 for Whole Foods grocery delivery later this month, you can get free delivery for orders that exceed a certain amount (depending on where you live).

You can also use the service to get discounts when you order more or when you set up automatic delivery subscriptions for certain items and save even more for future deliveries. Plus, some items, like fruit snacks and cookies, are SNAP-eligible.

3. Amazon Pharmacy’s two-day delivery and discounts

If you refill at least one prescription on a regular basis, Amazon’s Pharmacy may be a more convenient choice. Plus, Prime members may get lower prices on medicine. Amazon will transfer your prescriptions, and 24/7 pharmaceutical assistance is available. The pharmacy works with most insurance plans, but it is available in 45 states right now.

4. Try Amazon’s personal shopper program

Prime members can order clothes for their next outing with Prime Try Before You Buy (the name changed from Prime Wardrobe). Here’s how it works: Choose up to eight items — clothes, shoes or accessories. Keep them for up to seven days to see if you like them. Send back what you don’t like for free and only pay for what you keep.

And you can try the styling service for personalized help starting at $5 per month. If you’re not sure which clothing or shoes are eligible, look for the «Try Before You Buy» icon.

5. Amazon gift cards when you trade in used electronics

Amazon is boarding the train to the sustainability station, and it’s something you can directly benefit from. With Amazon Trade-In, you can send back your used electronics in exchange for Amazon gift cards. Make sure to check on the eligibility of each product — some trade-in options are only available for a limited time.

6. Discounts and guarantees on preowned products

Amazon Renewed gives you access to products that may have been opened but weren’t used by their original owners — or were refurbished. Amazon assures that these preowned items work and look like new, coming with the Amazon Renewed Guarantee. A variety of products and brands are available, even from Apple and Vitamix.

7. Amazon Warehouse savings on almost everything

Amazon Warehouse resells like-new or preowned items that have been returned by customers. Some of the products only had their boxes opened by original purchasers before they were sent back, unused, so they’re resold at a discount. While there’s no regular manufacturing warranty on these products, they are backed by Amazon’s 30-day return policy and 90-day renewed item return policy.

8. Amazon Outlet’s overstocked items

The Amazon Outlet features overstocked items and other products at discounted prices. Like at an outlet, you can find premium brands and items under $10 ranging from home furniture to clothing and pet supplies. Keep in mind that although the online shopping experience is convenient, just like an outlet, the best deals can take sifting to find. Luckily, you can do it from the couch.

9. Limited-time Lightning Deals year-round

Amazon’s Lightning Deals are a promotion where a product or service is on sale for a short period of time or until it’s sold out. You can find them all throughout the site, but especially on Prime Day and in Today’s Deals. On Prime Day, Lightning Deals are only for Prime members.

There is one lightning deal per customer until the promotion ends or all the deals are claimed by other shoppers. You can join a waitlist for a deal, but keep in mind that these discounts are extremely time-sensitive, so grab them fast. Unless refreshing the page over and over is your thing, these deals aren’t necessarily the way to find something specific because of their fleeting nature and limited availability.

10. 5GB of storage with Amazon Photos

Amazon’s online shoebox for photos and videos offers secure and unlimited full-resolution photo storage plus 5GB of video for Prime members. To use this feature, you can choose to manually or automatically upload media in the Amazon Photos app. You can personalize the displays on Amazon devices like Fire TV, Echo Show and Fire tablets as long as you have the app.

Plus, with the Family Vault perk, up to five family members can share the same plan. If you want more, there are paid plans available. If you choose to switch — which can be done anytime — there is a 100GB option for $2 per month and 1TB plan for $7 per month.

For more, here are the latest on the new Amazon Fire tablet, the Amazon Glow for kids and the new Halo View fitness tracker.

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know