Amazon Prime debuts discount for people on government benefits

Amazon offering Prime discount to those on government benefits

Amazon offering Prime discount to those on government benefits

What are your thoughts on Amazon Prime offering a discount for low income users?

The regular Prime membership is $99 a year or $10.99 a month. Membership includes Prime Video, Prime Music, Prime Reading, Prime Photos and unlimited fast, free shipping for $5.99 per month for one year, with the ability to cancel at anytime.

About 20% of the USA population receives government assistance, and most of those customers are loyal to Amazon's retail rival, Walmart.

Prime also gives members discounts on essentials like diapers.

The move, announced Tuesday, is seen by some analysts as an attempt to go after rival Walmart's lower-income shoppers. EBT cards are also used by government programs like Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF).

Overall, about 60% of US households have an Amazon Prime membership, with that figure growing across all demographics, Recode added, citing a Piper Jaffray survey on the subject.

Customers with an EBT card can enroll now and subscriptions can be renewed yearly up to four times. And the service has an astonishingly high renewal rate of roughly 96% - meaning that's how many customers renew their memberships after paying for the service for two years. In the US, Amazon claims to offer free shipping on over 50 million items.

Last week, Walmart said that it would begin testing a program in Arkansas and New Jersey that would use store employees to deliver online orders at the end of their shifts. Walmart reported in May a 63 percent increase in e-commerce sales over its most recent fiscal quarter.

Low-income shoppers can join Amazon Prime for $5.99 per month.

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