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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.

 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 for a year. Amazon is offering a 30-day free trial for qualifying customers.


The typical Prime membership is $99 a year, though people have the option to pay $10.99 a month. Prime benefits include free shipping, unlimited streaming of movies and TV shows, and a rotating selection of free e-books and magazines.

"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," Greg Greeley, vice president of Amazon Prime, said in the statement.

 notes, "The online retailer's move directly challenges Walmart — the biggest beneficiary of the Supplemental Nutrition Assistance Program (SNAP) — where at least one in five customers pay by food stamps."
And 

 adds that "Walmart generated about $13 billion in sales last year from shoppers using the SNAP Program, accounting for around 18 percent of the money spent through the program nationwide."


Not everyone is convinced that Amazon's strategy will pay off.

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, 

 it would acquire Amazon competitor Jet.com for $3.3 billion.


Last week, Walmart said 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.

Walmart and Amazon are bending over backward to make shopping easier for customers. But take heed: Shopping with the click of a mouse can be trouble for your wallet.

 recently remarked on two indications that you spend too much money on Amazon:


Business and Economic News

Doreen McCallister

Author

Amazon and Walmart are in a battle for low-income shoppers. Now Amazon is cutting the $10.99 monthly rate on its Prime membership to $5.99 for people who receive government assistance.

Amazon lowers Prime membership rate for low-income customers

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