How to Cancel Amazon Prime in 2023 as a Small Business Owner

As a consultant helping small business owners save money and optimize operations, one of the top questions I get asked is "how to cancel Amazon Prime and manage subscriptions".

And it‘s no surprise – with over 200 million Prime subscribers globally, business owners want to maximize the value they get from the membership.

But when should you consider cancelling? Here are the main reasons I see among clients:

  • You‘re paying for Prime benefits you simply don‘t use enough to justify the $139 annual fee
  • Your business has slowed and you need to reduce overhead costs
  • You initially tried Prime for perks like free 2-day shipping but have switched to vendors with lower costs

The good news is, cancelling Amazon Prime is quick and straightforward. In this detailed guide, I‘ll walk through the step-by-step process while also outlining key factors to consider beforehand as a business owner.

Step-by-Step Guide to Cancelling Amazon Prime

Before starting the actual cancellation process, I recommend business owners take two preparatory steps:

1. Review Any Pending Orders or Content

Log into seller central or your buyer account and check for:

  • Open orders not yet shipped and fulfilled by Amazon (FBA). Cancelling Prime mid-shipment can impact delivery promises.
  • Digital content available through Prime Reading that you may want to download beforehand
  • Kindle books eligible for returns within 7 days of cancellation

Monitoring these details ensures no critical business activities are disrupted by cancelling Prime prematurely.

2. Check Membership Type

Amazon offers several Prime options:

  • Monthly – cancel anytime with no renewal required
  • Annual – must actively cancel to avoid $139 annual charge
  • Student – verify if you have student eligibility before cancelling

Knowing your specific membership type allows you to properly align cancellation steps.

Once you’ve completed preparatory items, here is the cancellation process for Prime on both website and mobile:

Cancel on Amazon Website

  1. Visit account page
  2. Access Prime membership settings
  3. Locate end membership option
  4. Complete confirmation prompt
  5. Verify refund eligibility

Cancel on Amazon Mobile App

  1. Open app menu
  2. Navigate to account details
  3. Choose Prime membership page
  4. Select end membership
  5. Finish confirmation prompt
  6. Check refund status

For visual guidance, see steps 1-5 outlined in chart below:

Platform Step 1 Step 2 Step 3 Step 4 Step 5
Amazon Website Visit "Your Account" Go to "Prime Membership" Click "End Membership" Select "Cancel Membership" Check refund eligibility
Amazon App Open menu Go to account details Choose "Prime" page Click "End Membership" Verify refund status

Tip for Business Owners: Want to keep Prime Video? You can cancel just the shipping benefits while maintaining access to video streaming.

What Happens After Cancellation?

Once you cancel Prime successfully, any ongoing membership benefits will cease immediately, including:

  • Free 2-day shipping
  • Access to Lightning deals
  • Prime Video streaming
  • Ad-free music with Prime Music
  • Unlimited reading on Kindle devices

But fear not, you can always sign back up down the line if you change your mind. Just visit the Prime enrollment page to restart your membership.

The key things I advise business clients before cancelling:

  • Download any Prime Video content beforehand you may want offline access to
  • Return eligible Kindle books within 7 days of cancellation
  • Ensure no pending shipment or inventory restocking issues

Am I Eligible for an Amazon Prime Refund?

One of the top cancellation-related questions I get asked:

"Will I get a refund if I cancel Amazon Prime mid-year?"

The answer depends on your specific membership type and payment details.

Here‘s an eligibility breakdown:

  • Monthly: Cancel anytime without penalties
  • Annual: May get partial refund depending on cancellation timing
  • Students: Full refund if within 6 month free period

The amount of partial annual refunds depends on:

  • Days remaining in membership year
  • Applicable taxes in your state
  • Usage level of benefits like shipping

By default, refunds apply to your original payment method and appear within 3-5 business days after cancellation.

I‘d advise checking directly with Amazon customer service if you don‘t see your refund in this window.

Why Do Businesses Cancel Prime?

In my experience guiding brands on ecommerce best practices, these are the top reasons SMB owners cancel Prime:

  1. Switching to vendors with lower shipping costs and minimum order requirements
  2. Dollar value of benefits no longer exceeds $139 annual fee
  3. Need to reduce overhead due to shrinking sales and revenue

Especially if you sell high volume or bulky/heavy products, calculations often show shoppers realize greater profit margins through other fulfillment options beyond FBA and Prime.

But occasionally down the road, conditions change and the convenience Prime affords suddenly aligns better with your ecommerce operations and buyer audience at that point.

The key is staying adaptable and actively optimizing subscriptions based on your business needs and sales trends – no matter which direction they shift.

Is It Difficult to Reactivate After Cancellation?

The good news if those small business sales rebound or you want Prime access again for seasonal spikes in ecommerce orders:

Resuming any cancelled Prime membership takes just minutes.

Simply navigate back to the Prime signup page, choose your plan, and input payment details.

All previous activity and history will still be housed in your Amazon account profile. This makes reinstating Prime straightforward if you find yourself needing those logistics perks again.

Personally, I toggle this depending on retail forecasts and warehouse bandwidth among the SMB stores I consult.

My rule of thumb is evaluating Prime value every 6 months – though each business must decide what cadence works best.

The key is maintaining the agility to manage subscriptions wisely. This protects both customer experience and bottom lines long-term.

Final Thoughts

I hope this detailed guide better equipped you on how to cancel Amazon Prime properly while avoiding any subscription management headaches as a growing ecommerce business.

The process itself takes 5 minutes or less. The key is laying the groundwork to minimize operational disruptions and ensure major factors are considered beforehand.

As a lean startup, every dollar counts. So occasionally reassessing Prime value aligns perfectly with a data-driven, customer-centric approach to small business success.

You want to delight buyers sustainably for the long haul. This means ensuring profitability doesn‘t erode over years of scaling.

Canceling Amazon Prime requires no lengthy calls or complex troubleshooting. But the prep work is indispensable, especially during seasons of rapid growth or volatility.

So optimize benefits wisely and never hesitate to cancel or reactivate as conditions and cases dictate. Your time is best spent on crafting remarkable products, not unraveling subscription charges.

Let me know if any other questions come up! I‘m always glad to help fellow small business owners strategize.