AMAZON WANTS WALMART CUSTOMERS WITH GOVERNMENT ASSISTANCE
People who receive government assistance can now access Amazon Prime at a discounted monthly price, taking the war for retail dominance with Walmart to a new level.
The e-commerce giant announced that customers who have a valid Electronic Benefits Transfer (EBT) card, typically used for food stamps, qualify for a $5.99 per month for one year membership, compared to the $10.99 a month or $99 annual plan it normally charges.
The Wall Street Journal reported that the new Prime offering takes direct aim at Wal-Mart, which counts on shoppers who receive government assistance for a large percentage of sales.
Wal-Mart generated about $13 billion in sales last year from shoppers using the Supplemental Nutrition Assistance Program (SNAP), accounting for around 18% of the money spent through the program nationwide. Those customers also spend additional income while in Wal-Mart stores.
AMAZON WANTS TO BE MORE ACCESSIBLE TO A LOW INCOME CUSTOMERS
“We know when people try Prime they love it, because they save time and money with low prices on millions of items, unlimited access to premium videos and music, and fast, convenient delivery,” said Greg Greeley, Vice President of Amazon Prime, in a press release from Business Wire.
“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,” explained Greeley.
The membership buys access to unlimited two-day shipping, video and music content, photo storage and other perks.
Those who want to use the program have to demonstrate they qualify with a valid EBT card which is commonly used to disburse funds for several government assistance programs including Temporary Assistance for Needy Families (TANF), Supplemental Nutrition Assistance Program (SNAP), and Women, Infants, and Children Nutrition Program (WIC). The EBT card cannot be used to pay for membership.
Just a week ago Walmart unveiled new plans to challenge Amazon on the e-commerce front. In a bid to match Amazon’s ability to offer two and even same day delivery, the Bentonville-based retailer said it was testing a program that sends store employees to deliver online orders at the end of their shifts.
