Amazon Prime discontinuing shared free shipping; here's what you need to know and the timeline for the change
Amazon Introduces New Prime Membership Program Amidst Subscription Slump
In a bid to boost its Prime membership, Amazon has unveiled a new program called Amazon Family, replacing the Prime Invitee program. The move comes after the tech giant experienced a decline in new Prime account signups, even during an extended July Prime Day event.
According to the company's latest report, the number of US signups over the 21-day run-up to the Prime Day event in 2025 was around 116,000 fewer than in 2024 and 106,000 below Amazon's own goal. This decline did not meet internal expectations, highlighting the need for a change in strategy.
The Amazon Family program offers Prime benefits to up to two adults and four children in a single home. These benefits include free shipping, access to Prime Video, Prime Reading, Amazon Music, and more. The program also extends benefits to certain third-party companies, such as GrubHub.
Amazon is ending its Prime Invitee benefit-sharing program on October 1. Prime Invitees will no longer be able to use the free shipping perk and will need to get their own Amazon Prime subscription for free shipping starting in October.
The decision to end the Prime Invitee program follows a trend set by other streaming services like Netflix, Disney Plus, and YouTube Premium, who have also been cracking down on account-sharing.
The Amazon Family program was previously known as Amazon Household. After the first year, the monthly subscription cost is $15. First-time subscribers can get a year of Prime membership for $15.
Amazon is hoping to attract more Prime accounts by forcing separate households to have their own subscriptions. This approach aims to convert passive shared users into active paying subscribers.
It's worth noting that free shipping for sending gifts elsewhere will still be available under the new Amazon Family program.
Netflix, for instance, gained over 200,000 subscribers following its policy change, suggesting that this strategy could potentially help Amazon increase its Prime subscriber base.
In summary, Amazon's new Amazon Family program offers a range of benefits to up to two adults and four children in a single home, replacing the Prime Invitee program. The move comes as part of a broader trend among streaming services to enforce stricter household-sharing rules and promote individual subscriptions.
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