Amazon giving PRIME discount to people on food stamps; full price customers are irked

Amazon.com is looking to attract new customers who are on food stamps and other government assistance by offering deep discounts.

The retail giant announced its decision to offer its Prime service, which offers free two-day shipping on many items as well as an extensive video and music collection, to recipients of government assistance for $5.99 a month, the New York Post reported.

The membership price to the general public is $10.99 a month, or $99 per year.

Image: Shutterstock

The move is seen by many experts as an attempt to compete with WalMart, who had around $13 billion in sales in 2016 from Supplemental Nutrition Assistance Program (SNAP).

Amazon also announced that it will add ways for participants in government programs other than SNAP to receive the same discounts, according to the Post.

“We designed this membership option for customers receiving government assistance to make our everyday selection and savings more accessible, including the many conveniences and entertainment benefits of Prime,” Amazon Prime Vice President Greg Greeley said in a statement.

The Post noted that this is not Amazon’s first foray into tapping into the low-income households market.

In April, it announced a program called Amazon Cash that allows customers to add money to their Amazon account if they don’t have a debit or credit card. Some 7 percent of households in the US do not use banking accounts at insured institutions, and this program would allow them to still shop online through Amazon.

The announcement angered many on social media.

Others thought it was fantastic.

Wake up right! Receive our free morning news blast HERE

Carmine Sabia

Comments

Latest Articles