Are Paid Memberships to Amazon, Target and Walmart Worth the Cost?

Retailer membership programs promise instant gratification — fast, free shipping of millions of products — plus other freebies and special deals. And despite annual fees that can hit more than $100, many of us are paying up.

According to a 2023 survey by Deloitte, 53 percent of consumers shell out for so-called paid loyalty programs, up from 17 percent in 2021. It’s a big win for retailers; a 2020 survey by McKinsey found that joiners are 60 percent more likely to increase their spending. Amazon Prime is the granddaddy of these programs. Rival Walmart started Walmart+ in 2020, and Target Circle 360 launched earlier this year.

The competition is intense for shoppers as the perks pile up. But are they worth it? Below is a rundown of benefits from the three biggies, with a spotlight on recent changes to each. If you sign up for these or any other membership programs, stay on top of what you’re getting for your money, since companies can revise terms quickly. Amazon and Walmart, for example, regularly tweak member benefits, and Target says to stay tuned for upgrades.

Amazon Prime

Price: $139, or $14.99 a month (students and government-assistance recipients may qualify for a discount)

My take: It costs a lot, but you get a lot.

Highlights:

• Fast, free shipping. Many items are shipped in one day or the same day you order. And members are getting their packages faster than ever with the expansion of one-day and same-day delivery.
• Deals. Access to big Prime Day sales and other member-only deal days; discounts at Whole Foods Market—including 10 percent off sale items—and many discounted items at Amazon Fresh; plus exclusive Prime deals.
• Health care discounts. Virtual and in-person health care is available for an extra $99 a year or $9 a month, which is 50 percent off. Add up to five family members for $66 a year per person or $6 per month.
• Multimedia extras. Unlimited photo storage, free music, books and games

What’s new:

• Grocery delivery subscription. Pay $9.99 a month for unlimited deliveries of orders over $35 from Amazon Fresh and Whole Foods, as well as a bunch of local grocery stores and specialty retailers, such as Cardenas Markets, Rite Aid, Save Mart and Mission Wine & Spirits. (No major national supermarket chains other than Whole Foods are included.)
• Free restaurant delivery. A Grubhub+ membership, eliminating delivery fees on food orders above a minimum amount and giving you a 5 percent credit on eligible pickup orders, is now included in Amazon Prime; previously, Prime members got Grubhub+ for only a year. (Restaurants may mark up prices on orders.)
• Drug discounts. Prime members on Medicare have unlimited access to 60 eligible prescription medications for a total of $5 a month through Prime’s RxPass program.

Target Circle 360

Price: $99 a year ($49 for holders of a Target Circle credit or debit card; $4.99 a month for college students)My take: If you get weekly deliveries of groceries and other products, this program could pay off within a few months, since same-day delivery normally costs $9.99 per order.