A new study by Amazon found that a year of Amazon Prime membership costs $100 less than a year’s membership at traditional retailers.
The study, released Wednesday by consumer advocacy group Public Knowledge, found that consumers can save up to $2.75 per month by subscribing to Prime and getting their hands on a larger selection of products at the discount price.
In the study, Public Knowledge surveyed more than 4,000 consumers and found that Prime members spend $1.25 less per month than the typical consumer, who spends about $40.
That difference in price comes as consumers become increasingly wary of retailers’ discounts.
Public Knowledge noted that many of these discount retailers, including Wal-Mart, Target, Costco and Home Depot, have slashed their prices on goods ranging from televisions and electronics to cosmetics and household items.
Amazon Prime members can buy goods from these retailers for about $9.95 per month, compared with $18.95 for the typical American, according to the study.
Public knowledge also found that the average Amazon Prime member has $2,200 in savings per year.
Consumers who are Prime members are eligible for a $1 discount per month on the average value of all goods bought at the retailers, Public Safety said in a news release.
The findings come as Amazon continues to cut back on promotions, including a $15 off-peak shipping price on select items, which has already helped boost its online shopping revenue, according the organization.
But while Amazon Prime has helped push down prices on items like computers and smartphones, many customers say they are not yet convinced the service is a good deal.
The group said it expects many of its members to switch to Prime over time, but the price drop might be a short-term gain.