Amazon is attempting to lure low-income shoppers from Walmart by offering a discount on its pay-by-month Prime membership for people who receive government assistance.
The typical Prime membership is $99 a year, but those who cannot afford to pay up front also have the option to pay $10.99 a month.
The giant online retailer said on Tuesday that people who have a valid Electronic Benefits Transfer card, used for programs such as the Supplemental Nutrition Assistance Programs, or food stamps, will pay $5.99 per month.
Amazon Prime benefits include free shipping, unlimited streaming of movies and TV shows and a rotating selection of free e-books and magazines.
Amazon is offering a 30-day free trail for qualifying customers.
Reuters reports:
The Wall Street Journal adds:
But not everyone is convinced that Amazon's maneuver will pay off for the company.
The Associated Press reports:
Competition heats up
Amazon and Walmart each have been upping their game to cut into the other's bottom line.
Walmart is pressing ahead with strategies to better compete against Amazon online. Last year Walmart announced it would acquire Amazon competitor Jet.com for $3.3 billion.
Last week Walmart announced 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.
Bloomberg reports:
Walmart and Amazon are bending over backwards to make shopping easier for customers.
But low-income shoppers, and for that matter any online shopper, take heed: shopping with the click of a mouse can be trouble for your wallet.
The website CheatSheet.comrecently remarked on two indications that you spend too much money on Amazon:
- your credit card statements are full of Amazon purchases
- your living room is cluttered with unopened Amazon boxes
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