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Why I didn’t buy from Amazon.com wireless store

December 22nd, 2010 · No Comments

The convention wisdom is that Amazon.com offer the cheapest cell phone deals if you purchase a two-year plan with your phone purchase.

I beg to differ. My family cell phone recently expired. I was shopping around. I need to four lines in total, plus two data lines. Here is what I found:

  • Most online mobile stores have essentially the same discount structure – Amazon.com, Dell.com (yes, Dell is selling cell phone plans), Newegg.com, etc. – their online discount is more or less the same.
  • Amazon.com offers great discount on phones. However, they require the purchase of expensive data plans. For example, most carriers nowadays offer tiered data plan. In the case of T-mobile, you can start with 200MB/month, which is enough for my use. However, Amazon don’t offer the lower-tiered data plan. Almost all data plans on amazon.com are unlimited, which is much more expensive.
  • I ended up buying from Costco. Although I paid about $100 more for the phone, I saved much more on the two-year voice and data plan. In total, for two years, I’ll save more than $250.

Tags: Personal Finance

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