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Amazon Prime debuts discount for people on government benefits

By Julia Horowitz, CNN

Customers normally pay $10.99 per month or $99 per year for Prime subscriptions, which offers free two-day shipping on many products as well as access to streaming video and music services.

Now anyone with a state-issued debit card for government benefits can get Prime for $5.99 a month.

The aim is to make “savings more accessible” to everyone, according to spokeswoman Julie Law. She adds that delivery could make life easier for customers who may not have reliable access to transportation, and that Prime gives members discounts on essentials like diapers.

Amazon (AMZNTech30) already has a well-heeled customer base, according to analysts. With this program, it hopes to pull in more low-income shoppers.

“It makes it so there’s no component of the U.S. market that can’t be an Amazon customer,” said Mike Olson, an analyst with Piper Jaffray.

It’s unlikely to cause a big spike in sales, said Michael Pachter, an analyst at Wedbush Securities. But it sends a message that Amazon is for everyone.

Read more at http://money.cnn.com/2017/06/06/technology/amazon-prime-discount-low-income-shoppers/

 

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