Amazon Is Targeting Walmart’s Customer Base By Offering Prime Discounts To Low-Income Families

mag941 June 7, 2017 0
Amazon Is Targeting Walmart’s Customer Base By Offering Prime Discounts To Low-Income Families

Walmart’s unchallenged rule as the leader of the retail industry might not be as widely accepted a fact as it once was thanks to the internet and other competitors, but in many parts of the country the brick and mortar giant is still the go-to store for everyday needs and major purchases alike. In recent years, Amazon has made more and more of a push to combat brick and mortar competitors with same-day shipping and automatic ordering for some household needs and their latest business decision looks to be a clear shot at one of Walmart’s largest customer demographics.

Amazon is now offering a massive 45-percent discount on it’s Prime subscription service for customers who are receiving government aid. While it’s not a direct discount on all Prime items, that subscription discount will open doors for people to access deep discounts and free shipping on thousands of items which makes a difference for low-income shoppers who may be paying similar prices at Walmart. This opportunity, however, means that those customers who don’t have the means to get to a Walmart or don’t live close to a location can now have necessary purchases delivered directly to their home for discount prices.

Recode reports that the discounted price will be $6/month for those eligible, compared to $11/month normally — people will qualify for the lower price on a yearly basis and can qualify up to four total times for the discount. While Walmart is one of the foremost recipients of the US SNAP program, Amazon’s offer only currently applies to customers who use EBT cards which can be used electronically. However, Walmart shouldn’t feel too comfortable with that differentiation as Amazon also says they are looking for ways to expand beyond EBT eligibility in the future.

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