Amazon Prime to Cease Shared Free Shipping; Here's What You Need to Know and Timeline of Implementation
In a recent announcement, Amazon is set to phase out its Prime Invitee program and replace it with the new Amazon Family program. The change, effective from October 1, will affect the way Amazon Prime benefits are shared within households.
The Amazon Family program is designed to offer Amazon Prime benefits to up to two adults and four children living in the same primary residential address. This move aligns Amazon with other streaming and subscription services such as Netflix, Disney Plus, and YouTube Premium, who have also implemented similar policies to prevent membership sharing between family and friends.
Current Amazon Prime Invitees have until the end of September to take advantage of the current program before changes take effect. Starting in October, Amazon Prime Invitees will no longer be able to enjoy the free shipping perk. However, you'll still be able to use free shipping to send gifts elsewhere.
The new Amazon Family program will be managed by Amazon itself, allowing Amazon Prime members to share benefits like free two-day shipping with only one other adult and up to four child profiles within the same household. Members outside the household are encouraged to get their own Amazon Prime subscription.
The Amazon Family program includes benefits for free shipping, Amazon Prime Video, Amazon Prime Reading, and Amazon Music. First-time subscribers to Amazon Prime can enjoy a year of membership for $15, after which the monthly subscription cost is $15.
Amazon's decision to phase out the Prime Invitee program comes amidst a slowdown in new Amazon Prime account signups, despite an extended July Amazon Prime Day event. Reuters reported that Amazon registered 5.4 million US signups over the 21-day run-up to the Amazon Prime Day event, which is 116,000 fewer than during the same period in 2024, and 106,000 below the company's own goal.
Interestingly, Netflix gained over 200,000 subscribers following its account-sharing crackdown, indicating a potential shift in consumer behaviour towards paying for individual subscriptions. As Amazon continues to evolve its Amazon Prime program, it will be interesting to see how these changes impact user behaviour and subscription numbers.
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