Millions of Amazon customers are about to lose a free shipping benefit they’ve relied on for years. And since holiday shopping is just about to kick into gear, and tariffs are already starting to affect prices on everything from clothing to pantry products, the timing couldn’t be worse.

The shift highlights just how valuable Prime’s shipping perks have become for consumers and for Amazon’s bottom line.

Amazon shipping figures:

• Prime members saved an average of $500 on delivery fees in 2024 — nearly four times the cost of a membership.
• Typical shipping costs run $4.50 to $6.50 plus about $1 per pound, meaning every “free” package Amazon ships is a cost the company absorbs or redistributes.
• On average, sending a 1-5 lb. package costs between $5.52 and $9.06 across U.S. carriers.

With numbers like these, it’s easy to see why Amazon  (AMZN)  is looking for ways to reduce its shipping perks and capture more revenue from customers.

Amazon Logistics delivered 28% of all U.S. packages last year, handling more than 9 billion Prime purchases with same- or next-day delivery.

Amazon shipping changes for Prime members

Beginning October 1, 2025, and right before Amazon’s typical Prime Day event, Amazon will shutter its Prime Invitee program. 

For more than a decade, the benefit has let Prime members extend free two-day shipping to a friend or relative outside their household.

The program launched in 2009, long before Prime evolved into the $139-a-year bundle of shipping, video streaming, music, and digital services it is today. While Amazon stopped accepting new invitees in 2015, existing participants were “grandfathered in,” giving them years of free shipping without paying for their own subscription.

Related: Most of Europe stops shipping packages to the United States

Next month, invitees who want to keep the benefit must now pay for Prime themselves. Amazon is also steering customers toward Amazon Household/Amazon Family, which allows two adults living at the same address to share Prime shipping and digital perks.

“To share benefits, you and your invitee must live together at the same primary residential address. This is the address you consider to be your home and where you spend the majority of your time,” according to Amazon.

Companies are cracking down on subscription “sharing”

The change is part of a broader industry trend. Subscription companies from Netflix to Disney+ have cracked down on account sharing in recent years. Now Amazon is applying the same logic to its shipping perks.

Industry analysts estimate the Invitee program still had “low tens of millions” of U.S. users. For Amazon, converting even a fraction of them into paying subscribers could represent a major revenue boost.

How to save on Amazon shipping this holiday season

Holiday shopping is Amazon’s busiest season, and losing free shipping in October could force many invitees to rethink how they buy gifts online. 

Non-members must either pay shipping fees or meet Amazon’s $35 free-shipping threshold, which can be a hurdle for shoppers who purchase smaller items.

To soften the blow, Amazon is offering an introductory Prime rate of $14.99 for the first year for invitees who sign up before December 31, 2025. That is a big savings, considering standard Prime pricing is currently $14.99 per month or $139 annually.

Still, for families and friends who relied on a single Prime account to cover multiple addresses, the shift could require several new subscriptions. That’s precisely what Amazon is banking on: more individual members paying full price, fewer free riders.

There are, however, a few ways to mitigate the impact of the change.

Ways to save without a standalone Amazon Prime membership:

• Consolidate orders to meet Amazon’s $35 free-shipping minimum.
• Use Amazon Household/Amazon Family to share benefits with another adult at the same address.
• Lock in the $14.99 first-year rate before December 31.
• Consider alternatives: Walmart+ and Target Circle 360 both offer competing delivery subscriptions that may fit different budgets and shopping habits.

Amazon’s decision underscores the importance of subscription revenue to its growth strategy. For years, Prime was about locking in loyalty with fast, free delivery. 

Looks like now that we’re all hooked on the convenience, Amazon is looking to ensure maximum profits.

Related: Temu shipping from China to U.S. again, amid tariff tensions