How to use your points and miles for purchases on Amazon

While redeeming points and miles for premium international flights and luxury accommodations might seem like the best choice, not everyone seeks out lavish travel. For those focused on saving, using points and miles for daily expenses can be more appealing.

Planning to seize the Prime Day offers? Think about utilizing your points and miles for Amazon purchases. If you're uncertain about how to do this—or if it's the right choice for you—we'll outline your options below.

Using credit card rewards for purchases on Amazon

Before we get started, it's important to understand that using points for Amazon purchases usually doesn't provide a high redemption value. The challenge is that many programs offer a less attractive rate for direct redemptions compared to redeeming for Amazon gift cards.

Now, let's explore the options offered by the most popular programs.

Chase Ultimate Rewards: between 0.8 and 1.5 cents per point

Chase Ultimate Rewards lets you connect your Chase and Amazon accounts by signing into your Ultimate Rewards account and selecting "Pay with points at checkout" under "Shopping & Experiences." After linking, you’ll see an option to use points at checkout on Amazon.

However, you'll receive a meager value of 0.8 cents per point when redeeming Ultimate Rewards points for Amazon purchases. This redemption rate falls significantly short of TPG's July 2024 valuation of Ultimate Rewards points at 2.05 cents each.

Chase also allows you to redeem points for Amazon gift cards directly through their site. In your Ultimate Rewards account, select "Redeem for gift cards" under "Shopping & Experiences," and then search for Amazon.

If you buy a gift card with points on Amazon, your points will still be valued at 0.8 cents each. Purchasing through Chase offers a slightly better rate of 1 cent per point.

One of the best strategies is to use your Chase card for Amazon purchases and redeem Ultimate Rewards points for a statement credit. This way, you’ll receive a value of 1 cent per point, plus earn additional points on your purchase, along with benefits like purchase protection and an extended warranty, if your card includes these features.

Alternatively, you can use points to pay for an Amazon gift card with Chase's Pay Yourself Back feature. Not all transactions qualify, and most will give you a rate of 1 cent per point. However, Chase occasionally runs promotions offering 25% or 50% more value on select categories. For instance, if your card has a 50% bonus at grocery stores, you could buy an Amazon gift card there and use Pay Yourself Back at a value of 1.5 cents per point.

Amex Membership Rewards: between 0.7 and 1 cent per point

If you hold a card that earns American Express Membership Rewards points, such as The Platinum Card® from American Express or the American Express® Gold Card, you can connect your Amazon account and redeem points during checkout. However, the redemption rate is lower, at just 0.7 cents per point (compared to TPG's July 2024 estimate of 2 cents for Membership Rewards points).

If you have a cash-back Amex card, such as the Blue Cash Preferred® Card from American Express or the Blue Cash Everyday® Card from American Express, you’ll receive a value of 1 cent per point for Amazon purchases, which is the same as redeeming your points for a statement credit to cover an Amazon gift card.

Occasionally, American Express offers targeted promotions that allow you to save on Amazon purchases by redeeming just 1 Membership Rewards point.

Citi ThankYou Rewards: 0.8 cents per point

Citi ThankYou Rewards operates similarly, enabling you to link your Amazon account and redeem points at checkout at a value of 0.8 cents per point.

Capital One: between 0.8 and 1 cent per mile

Capital One also provides the option to use rewards for shopping on Amazon. However, with miles-earning cards like the Capital One Venture Rewards Credit Card and the Capital One Venture X Rewards Credit Card, you'll receive only 0.8 cents per mile.

For cash-back Capital One cards such as the Capital One Savor Cash Rewards Credit Card, your miles are valued at 1 cent each, equivalent to the value you'd obtain from statement credits.

Using hotel points to make purchases on Amazon

Some hotel rewards programs permit the use of points for Amazon purchases, but the redemption rates tend to be quite poor.

Hilton Honors: 0.2 cents per point

Hilton Honors allows you to connect your account to Amazon, enabling you to shop with points at a rate of only 0.2 cents each. This positions it among the least favorable options, especially considering the already low valuation of Hilton points (0.6 cents each, based on TPG's July 2024 valuations).

For example, 60,000 Hilton Honors points would equate to just $120 in Amazon purchases — or you could redeem them for a night at the Hilton Garden Inn Kauai Wailua Bay in Hawaii, valued at over $500.

IHG One Rewards: 0.2 cents per point

IHG One Rewards allows you to exchange 49,000 points for a $100 Amazon gift card via the IHG One Rewards online catalog, which translates to about 0.2 cents per point. As of July 2024, TPG values IHG points at 0.5 cents each, and you'll often find better value by using IHG points for hotel stays instead.

Marriott Bonvoy: between 0.25 and 0.33 cents per point

Finally, you can access your Marriott Bonvoy account to redeem points for Amazon gift cards, with a rate ranging from 0.25 to 0.33 cents per point.

This is significantly lower than TPG's valuation of 0.85 cents per point as of July 2024, making it more advantageous to use Bonvoy points for hotel stays. For example, instead of opting for a $100 Amazon gift card, you could redeem 30,000 Bonvoy points for a night at the AC Hotel New York Downtown, where cash prices vary from $200 to $600 per night.

Alternative saving strategies

If you choose to pay for Amazon purchases in cash instead of using points, there are several strategies to maximize your rewards. One effective method is to buy Amazon gift cards from retailers that provide category bonuses, then use those cards for your Amazon transactions.

For example, the Ink Business Cash® Credit Card offers 5% cash back at office supply stores, while the Chase Freedom Flex® and Chase Freedom Unlimited® give you 3% cash back at drugstores. Additionally, the American Express Gold Card rewards you with 4 Membership Rewards points for every dollar spent at U.S. supermarkets, up to a cap of $25,000 per calendar year (1 point thereafter).

It's crucial to understand that using an Amazon gift card might involve some compromises. Opting for a gift card could mean missing out on certain perks provided by your credit card, such as extended warranties and purchase protection.

Several card issuers provide extra chances to earn bonus points or save money. American Express often runs Amex Offers, which grant bonus points to select cardholders. For instance, there have been promotions offering 2 bonus Membership Rewards points for every dollar spent on Amazon, up to a maximum of 1,000 bonus points.

Amazon also frequently has targeted discounts for using points on your purchases. For example, some Chase cardholders have managed to save $60 on their Amazon order by redeeming just 1 Ultimate Rewards point.

To ensure you don’t miss out on any available targeted offers, it's wise to link all your cards that earn Chase Ultimate Rewards, Amex Membership Rewards, and Citi ThankYou Rewards points to your Amazon account. You can find detailed instructions for linking each type of card on their respective websites.

Final thoughts

At TPG, we primarily emphasize travel rewards due to their high value. Nevertheless, there are numerous alternatives for redeeming your rewards, including for Amazon purchases. If you plan to use points on Amazon this Prime Day, make sure to weigh the pros and cons of each option before making a well-informed choice.