Posted on 06/07/2017 10:45:37 AM PDT by Captain Peter Blood
Amazon will now offer discount memberships to its Prime subscription service at a rate of $5.99 each month.
Prime is best known for getting subscribers unlimited free two-day shipping on most items, as well as allowing access to Prime Music, Prime Video, Prime Reading and Prime Photos. For now, the discount is available to people with a valid Electronic Benefits Transfer (EBT) cards, but Amazon said it plans to expand the lower rate to people on other government assistance programs.
Amazon said a Prime membership helps customers “save time and money.”
“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,” said Greg Greeley,Vice President of Amazon Prime, in a press release.
EBT cards are used to distribute funds from a number of government assistance programs, like the Supplemental Nutrition Assistance Program (SNAP), the Women, Infants and Children Nutrition Program (WIC) and the Temporary Assistance for Needy Families (TANF). Programs and distribution mechanisms can vary by state.
As of last month, there were over 21 million households comprising nearly 43 million people on SNAP. Each household’s average monthly benefit is $252.92.
To enroll, people have to provide an eligible EBT number. The service will cost $5.99 a month instead of the usual $10.99 and can be canceled at anytime, but customers can’t use their benefits to pay the monthly fee. They’ll then have access to all of Prime’s deals and services, including a 20 percent discount on diaper subscriptions.
The discounted Prime membership is Amazon’s latest effort to compete with Walmart for low-income shoppers. In January the online retailer announced that starting this summer, people can use food stamps to pay for its online grocery service. Amazon is participating with six other grocery retailers as part of a U.S. Department of Agriculture program aimed at eliminating neighborhoods where residents don’t have access to affordable, fresh food. As with the discounted Prime memberships, customers can’t use their government benefits to pay the program fees.
That program will be available in seven pilot states in both rural and urban areas, USDA said. The agency said the experiment will help test online ordering and payment using EBT.
Amazon is offering discounted Prime memberships to people on government assistance. Ted S. Warren AP
By expanding the customer base they can lower overall costs and increase offerings. Just might take a little while.
The monthly Prime fee is $10.99 / $132 a year ... so it’s a 45% discount.
By expanding the customer base they can lower overall costs and increase offerings. Just might take a little while.
****************
Will they ever earn their first dollar? Will they remain in business long enough to drive their brick and mortar competitors out of business?
No, not just the shareholders....
It will be the subscribers who pay...and if Amazon raises prices on prime products to cover the deep discounts being offered to welfare recipients, then subscribers will bolt and I certainly hope that they do.
Although I understand discounts for military and elderly, I have never especially liked it when a business caters to any particular segment of consumers...perhaps it is because I feel I am always the one doing the subsidizing...neither I nor my family ever qualify to be in any favored groups.
Frankly I think discounts to welfare moms will just encourage more government assistance seekers (we laready have 1/5 on foodstamps)...and IMHO that makes these discounts outrageous—welfare recipients with high-end electronics such as obama smart phones to order over priced treats which can arrive in 1 or 2 days—I felt the same way when all the area restaurants became foodstamp friendly. Why are foodstamp recipients frequenting fast food restaurants where food is more expensive?
I think food stamps should cover bare necessities and be available for people who are truly destitute—not folks able to afford streaming on Amazon and ordering of overpriced goodies and toys. We have come a long way from government cheese.
What next? Reduced airfare on Southwest?
Do it! I cancelled everything affiliated with Amazon at the beginning of this year: Prime, Amazon's VISA, and my registered account. Never looked back, either.
This latest 'special privilege' madness makes me really happy I got out when I did.
Whose next, Walmart to offer welfare recipients added discounts?
This to me is similar to raising taxes on the poor via a sugar tax. It just drains the EBT system which we all pay for. It will eventually increase benefits to users and coffers to municipalities.
Besides the freeloaders on welfare, are they offering any discount to our servicemen and women?
You mean I’m paying $10.99 a month for Amazon Prime? I thought it was $99 for a year. Geez. I think I’m going to have to stop it or go on food stamps.
There’s all kinds of paths to discounted Prime memberships, so what.
No, I just checked the Amazon website and it's $10.99 if you're paying per month. If being charged annually, it's still $99.00.
Amazon is doing a great job on both.
And smart enough to reinvest every dollar of profit back into undermining all competitors.
Monthly fee averages to higher than annual payment. Not unusual.
The EBT discount is just $27 off annual fee. Not sure why some here are freaking out so badly for helping the poor a little, and making a buck in the process.
Amazon’s taxes are already paying a portion of my disability check, so I won’t complain.
As are the rest of the American taxpayers out there.
Thank you, Taxpayers!
(seriously)
This is offensive. I’m in break-even territory financially, but have to watch every penny I spend. Why are they giving a break to people who already aren’t paying their own way?
Most of those on EBT will not be paying the annual fee I imagine. So at $10.99 a month, if you choose that option rather than paying the annual $99, then for those paying $5.99 it is $60.89 less, about half.
Oh well it’s Amazon’s business.
How do they make money off it? I’ve used it to trace my family and never paid a dime. They offer free accounts.
I have no problem with charity in the form of discounted prices. We are called to help the poor, and “gleaning fields” may have new forms in our modern age.
There are a number of these genealogy services out there, and yes some of them are free, but you have to look for those.
Someone like Ancestry and a couple of others advertise all the time so a lot of folks sign up.
I am going to try your link. The Mormon Church is not trying to make money per se off their library but I imagine they are getting some.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.