Amazon offers Prime discount to those on government benefits

Associated Press

NEW YORK

Amazon is making a play for low-income shoppers.

The online leader is offering a discount on its pay-by-month Prime membership for people who receive government assistance.

The move, announced Tuesday, is seen by some analysts as an attempt to go after rival Walmart’s lower-income shoppers. The world’s largest retailer has revamped its shipping program and improved other services to drive online sales growth as it tries to narrow the gap with Amazon.

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 for the Amazon Prime benefits such as free shipping and unlimited streaming of movies and TV shows.

The typical Prime membership is $99 a year, but those who cannot afford to pay up front also have a $10.99-a-month option.

Amazon’s aim with the latest move is two-pronged, says Ken Perkins, president of research firm RetailMetrics.

“It is part of Amazon’s overarching goal to inexorably move into every corner of retail,” he said. “Secondly, it is a direct move to pull consumers away from its chief retail rival Walmart, which has been far more aggressive competing with Amazon on price, offerings, delivery and building out its formidable e-commerce operations.”