With orders of $25 or more, Amazon offers its Prime members the Playskool Sesame Street Ernie Hugs Forever Friends Figure, model no. A3013, for $2.76 with free shipping. (Non-members can qualify for free shipping with orders of $35 or more.) That's the lowest total price we could find by $12. It features arms that hug.
Note: This item is in Amazon's "Add-on Program" and can only be purchased with an order of $25 or more.