As an expert in the retail and consumer industry, I know that employee discounts can be a powerful tool for attracting and retaining talent. According to a recent survey by Glassdoor, 79% of employees would prefer new or additional benefits over a pay increase. And 32% specifically want employee discounts.
Amazon, the world‘s largest online retailer, is well aware of the importance of employee discounts and benefits. With over 1.1 million employees globally and plans to hire thousands more, Amazon has to stay competitive. That‘s why it offers a robust employee discount program on top of industry-leading pay and benefits.
In this ultimate guide, I‘ll share everything you need to know about Amazon‘s employee discounts and how they compare to other top retailers. Plus, get an inside look at all the benefits Amazon offers to support its massive workforce.
How the Amazon Employee Discount Works
Let‘s start with the basics. All Amazon employees, regardless of role or tenure, can get a 10% discount on select items sold and shipped by Amazon. The discount is capped at $100 per year, so the maximum benefit is $1,000 in discounted purchases annually.
To qualify for the discount, you must be a current Amazon employee and wait 30 days after your official start date. At that point, you can access your discount through your Amazon A to Z employee portal.
The discount only applies to items that are both sold and shipped by Amazon, not third-party sellers. And some product categories are excluded, such as:
- Amazon Gift Cards
- Alcoholic beverages
- Subscriptions and memberships (like Prime)
- Digital products
- Wireless service plans
However, the discount is valid on hundreds of millions of other items storewide. Employees can use it an unlimited number of times until they hit the $100 annual savings cap. And it stacks with other Amazon deals and promotions.
Amazon Employee Discount vs. Other Retailers
A 10% merchandise discount is fairly standard in the retail industry. Most of Amazon‘s direct competitors, like Walmart and Target, offer a similar discount to their employees. Here‘s how Amazon stacks up:
| Retailer | Employee Discount |
|---|---|
| Amazon | 10% off items sold and shipped by Amazon, up to $100 off per year |
| Walmart | 10% off regular-priced items in-store on select days |
| Target | 10% off all merchandise, plus an extra 20% off wellness items |
| Best Buy | Variable discount up to 30% depending on item category |
| Costco | Free Costco membership plus 4 annual shop cards worth 2% of gross salary |
| Macy‘s | 20% off regular and sale-price merchandise |
| Kroger | 10% off store brands, plus discounts on mobile plans and movie tickets |
As you can see, employee discounts typically range from 10-30% depending on the retailer and product category. Grocery stores and department stores tend to offer higher discounts than big-box and online retailers.
While Amazon‘s 10% discount is not the most generous, it applies to an unparalleled selection of products. Amazon sells over 12 million items directly, compared to around 150,000 at Walmart and 75,000 at Target. So Amazon employees have more opportunities to save.
The Value of Employee Discounts
Clearly, employee discounts are a common benefit at major retailers. But just how valuable are they to workers? The answer is very. Studies show that employee discounts can have a major impact on job satisfaction and loyalty.
For example, 78% of employees say they‘re more likely to stay with an employer because of their benefits package. And 65% of workers consider benefits a key factor in whether to accept a job offer.
Discounts are an especially appealing benefit because they provide immediate financial value. And that‘s become even more important during the economic uncertainty of the pandemic. With the rising cost of living, getting 10% off everyday purchases at Amazon can make a real difference for employees.
Other Amazon Employee Benefits
Of course, an employee discount is just one piece of Amazon‘s total benefits package. To fully understand the value of working at Amazon, you have to look at the whole picture. Here are some of the top benefits Amazon offers:
Health Insurance
Amazon offers comprehensive health insurance, including medical, dental, and vision coverage starting on the first day of employment for full-time workers (20+ hours per week). Plans are available at low or no cost and cover preventive care, prescription drugs, mental health services, and more.
Paid Time Off
Amazon employees accrue paid time off based on years of service, up to a maximum of 22 days per year. They also get 7 paid holidays and an additional discount on trips booked through Amazon‘s travel portal.
Family Benefits
Amazon provides up to 20 weeks of fully paid parental leave for new parents, including for adoption. The company also covers up to $5,000 in adoption expenses and offers free access to parental support programs.
Education & Development
Through the Amazon Career Choice program, employees can get up to $12,000 in tuition, fees, and textbooks over 4 years for courses in high-demand fields like nursing, IT, and aircraft mechanics. Amazon also offers on-site training and leadership development programs.
401(k) & Employee Stock
Amazon matches employee 401(k) contributions up to 4% of pay, vested after 3 years of service. Employees can also participate in the Amazon.com Stock Purchase Plan to buy Amazon stock at a 15% discount twice per year.
These benefits show Amazon‘s investment in supporting employees‘ physical, financial, and career well-being. As one Amazon warehouse worker put it, "The benefits are something I‘ve never had before at any other job. They really make you feel appreciated."
The Bottom Line
Employee discounts are a valuable benefit that can help attract and retain top talent in a competitive labor market. And Amazon‘s 10% discount is a key part of its industry-leading benefits package.
While the discount may not be the most generous in retail, it offers huge savings potential given Amazon‘s massive product selection. Stacked with other perks like comprehensive health insurance, paid parental leave, and tuition assistance, it‘s a compelling reason to join Amazon‘s 1.1 million-strong workforce.
No wonder Amazon is consistently ranked as one of the best employers in the world. For workers seeking financial stability and career growth, Amazon‘s employee discounts and benefits can‘t be beat.
