10 Reasons To Cancel Amazon Prime (Especially After $2.5 Billion FTC Settlement)

If getting into your pajamas and engaging in some serious online shopping is your idea of a fun night in, you're not alone. From specialty stores to the latest things that "TikTok made us buy," it seems we're living in the golden age of online shopping. And at the heart of this golden age is the speedy, handy Amazon.

However, Amazon's widely beloved Prime membership is under new scrutiny this week. It agreed to a historic $2.5 billion settlement with the Federal Trade Commission (FTC) after regulators stated that Amazon tricked customers into not only signing up for Prime, but also making it difficult to cancel. This is the most significant civil penalty in FTC history, with $1 billion allocated towards penalties and $1.5 billion to be refunded to customers who were deterred from canceling. 

This raises concerns about how honest subscription services are and begs the question of whether Amazon Prime is actually worth it. In addition to this latest news, we're here to inform you that an Amazon Prime membership may not be all it's cracked up to be for several other reasons, especially if you're trying to eliminate financial stress. Here are 10 reasons why it may not be worth it for you.

And it wasn't just a little increase. Over the last three years, Amazon has increased its prices by more than 16%. The annual fee is now $139 (instead of $119), and the monthly fee is $14.99 (instead of $12.99). At a time when the cost of pretty much everything is going up, it's understandable that you'd want to cut costs. Your Prime subscription might be a good place to start.

It's also likely that we haven't even seen the end of price increases. Cutting subscription costs like this may help you in the long run. Try these financial tips to prepare for the next recession.

Don't let your fear of missing out make you keep your membership. You may miss out on Prime Day deals, but you will still be able to shop on Amazon.com for most of the products you love. 

Free delivery is often touted as one of the most compelling reasons to have a Prime membership. But did you know that it's easy to get free delivery from Amazon even if you're not a Prime subscriber? This is one of the best "hidden in plain sight" hacks every Amazon shopper should know.

Many items on Amazon are eligible for free shipping regardless of whether you have Prime. In some cases, there is an order minimum, but it's possible to find many items that ship for free under the minimum. Also, many third-party sellers offer free shipping.

Amazon made a name for itself by offering both everyday and "nice to have" items at record-low prices. But if you've noticed that Amazon prices don't always seem to be low, it's not all in your head. Sometimes, your local stores may offer promotions or better deals. 

The worst part of it all? When prices on Amazon go up, prices across the internet seem to follow suit. That's why you can usually still save the most money by scanning your local flyers and shopping in person.

The global pandemic showed us the value of a quick and reliable online delivery service, and we can see that online shopping is here to stay. But there are other options besides Amazon Prime.

The most notable Prime alternative is Walmart+. Walmart+ subscribers experience benefits similar to those of Amazon Prime, namely unlimited free (sometimes same-day) delivery. Subscribers also have access to discounts on gas. And to save time, the "Scan & Go" feature lets shoppers pay for their purchases in the store without visiting a cashier.

At $98 per year or $12.95 per month, Walmart+ is more cost-effective than Amazon Prime. If you're unsure if you want to spend the money, you can always opt for a free trial.

One of the benefits of Amazon Prime is the number of services you unlock with one single Amazon membership. The problem is that these services are only a benefit if you actually use them.

Currently, a U.S. Amazon Prime membership gives its members access to Prime Video, Prime Music, Amazon Photos, Prime Reading, Amazon Kids Plus, and, in some places, grocery delivery. While the length of this list may seem like a good thing at first, it loses its appeal when you realize that what it actually means is that you're paying for features you may not ever use.

For many of us, shopping on Amazon is like having a giant "impulse aisle" right in front of us. Unlike the grocery store's impulse aisle — which has harmless items like chocolate bars, magazines, and packs of gum — the Amazon impulse aisle may carry some pretty high-ticket items that may damage your bank account. And the last thing that most of us need is to buy a $400 inflatable hot tub on impulse.

Just because we can have things delivered to our house at the click of a button doesn't mean that we should. In fact, if the planet could talk, it would probably tell us to stop.

From the endless packaging to the gas it takes to transport items by plane, train, and automobile, there's no denying that Amazon Prime's operations and the consumerism that it encourages just aren't great from an environmental standpoint.

You probably don't shop online as frequently as you think you do. This may sound like a relief at first, but it should also be something you consider when you're asking yourself if Amazon Prime is worth the money. 

Consider this: If you only shop on Amazon a few times a month, you can likely just add items to your cart throughout the month and make one order. Before you subscribe to Prime, ask yourself if you really spend more than $139 in shipping every year. Considering that free shipping is a perk many online retailers offer these days, spending more than that annually would be quite a feat.

Yes, we said it. Though it gets a lot of hype, the Prime Day deals on Amazon are just underwhelming. The "deals" largely consist of items that are undersold or are third-party products. Or worse — they're just bad deals. The reason you hear so much about Prime Day is marketing.

Things aren't always what they seem, and that's especially the case when it comes to Amazon. If you're trying to spend less and crush your debt, then reexamining your Prime Membership could be a good place to start.

Plus, every dollar that you don't spend on the online retail giant is a dollar you could spend supporting a local business, a conscious choice that helps the community around you.