[Nfbmo] Amazon launches a low-cost version of Prime for customers on government assistance

Wed Jun 7 03:17:04 UTC 2017

Ever since I first heard this story when it was in my newsfeed this
morning, I have felt very uneasy about it.  After all day contemplation on
why I feel so uneasy about it the following is my conclusion.

I think that Amazon must have released it this morning thinking that they
were doing a good thing but my take on it is somewhat different.

Point 1:  EBT cards are only provided to people who receive Welfare
Benefits and/or Food Stamps.  I don't know about other states but in
Missouri this would be the absolute poorest of the poor.

Point 2:  Major corporations are not in the business to loose money and I
am sure that even with the discounted rate for EBT cardholders that Amazon
is still making money on those Prime memberships.

Point 3:  If they can still make money on the discounted rate on a Prime
membership, why don't they just give that rate to everyone.

My final point is, if they really wanted to do something for the poorest of
the poor they would give every EBT cardholder a free Prime membership.
They would still  be able to make some profit on the members purchases.

In summation I have concluded that this press release is a lame publicity
stunt and an inappropriate way to make a massive corporation even richer
off of the backs of the poorest of the poor.

Respectfully Submitted,
Randy Carmack

On Tue, Jun 6, 2017 at 11:09 AM, nancy Lynn via Nfbmo <nfbmo at nfbnet.org>
wrote:

> FYI. The article text is below the link.
>
>
> -Tyler
>
>
> Amazon launches a low-cost version of Prime for customers on government
> assistance | TechCrunch
>
> Article Link: http://tcrn.ch/2rQS0XP
>
>
> Amazon announced
> <http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-n
> ewsArticle&ID=2279027>
> today it’s making its Prime membership program more affordable to
> customers on government assistance programs, including food stamps. The
> program, which requires that customers have a valid Electronic Benefits
> Transfer (EBT) card to qualify, will bring the cost of Prime down from
> $10.99 per month to just half that, at $5.99 per month instead.
>
> The program will be available to any U.S. customer with a valid EBT card
> – the card that’s commonly used to disburse funds for a number of
> government assistance programs, including Temporary Assistance for Needy
> Families (TANF), Supplemental Nutrition Assistance Program (SNAP), and
> Women, Infants, and Children Nutrition Program (WIC).
>
> The card will only discount the cost of using Prime – it cannot be used
> to make purchases on Amazon.com, nor can it be used to pay for membership.
>
> The discounted membership will have all the perks
> <https://www.amazon.com/gp/help/customer/display.html?nodeId=200444160>
> associated with Prime, including free streaming video and music, free
> photo storage, access to the Kindle lending library, ability to shop
> from Amazon’s Essentials – the retailer’s low-cost line of everyday
> products, access to Prime Now (where available), and more.
>
> The move will make Amazon Prime more accessible to lower-income
> households and families, and could help Amazon shake the reputation that
> shopping its site and paying for its membership program are luxuries
> instead of more essential services.
>
> That’s different from the Amazon that exists today, where Prime’s growth
> has been fueled by upper-income shoppers.
>
> A study from Piper Jaffray in 2016
> <http://www.businessinsider.com/amazon-prime-penetration-by-
> household-income-2016-4>found
> that Prime membership’s penetration is highest and growing the quickest
> among those households with more than $112,000 per year in annual
> income. More than 70 percent of those households have a Prime
> subscription, the study found.
>
> However, there are benefits to bringing in the lower-income families
> online, too.
>
> Though they may be on assistance, that doesn’t mean they don’t still
> need to shop for everyday items – clothing, school supplies, household
> goods, personal care items, etc. And in many cases, Amazon Prime may be
> offering the better price on a given item, compared with competitors
> like Walmart and others. Over time, those savings could add up making
> the cost of the $6 per month membership worthwhile.
>
> This is especially true when you work other factors into the equation.
> For example, by shopping online, customers won’t have to spend the
> additional gas money going to the store and back. And, in some cases,
> customers don’t even have a vehicle at their disposal or are elderly,
> and require help with their shopping. Online shopping helps with these
> concerns as well.
>
> Plus, for families with babies, a Prime membership includes a 20 percent
> discount on diapers and wipes subscriptions, which would also positively
> impact the household’s budget.
>
> Finally, there’s the fact that Amazon, along with a number of online
> retailers, are working with the government on a program that will allow
> customers for the first time to use their food stamps (SNAP) via
> e-commerce websites.
>
> Announced earlier this year
> <http://fortune.com/2017/01/06/amazon-food-stamps/>, the USDA-led
> program <https://www.fns.usda.gov/snap/online-purchasing-pilot> is
> working with Amazon, Walmart, Thrive Market, FreshDirect, and other
> grocers to test how SNAP benefits could be used to pay for qualifying
> items – largely fresh goods, like those from Amazon’s Fresh grocery
> delivery service, as well as some packaged goods, like cereals, which
> are also available through Amazon Pantry. The pilot begins in early 2018.
>
> Bringing SNAP members to Amazon Prime would be a first step in being
> able to attract those shoppers, who today receive the bulk (69 percent)
> of Federal food and nutrition assistance.
>
> Last year, 44.2 million people per month participated in SNAP. Combined,
> spending for all of the USDA’s food and nutrition programs – including
> WIC, School Breakfast/Lunch, etc. – totaled $101.9 billion, with SNAP’s
> portion at $70.8 billion. That’s no small market – and worth certainly
> targeting, it could be argued.
>
> But until SNAP is accepted online, Amazon has been going after
> lower-income households in other ways. For example, earlier this year it
> launched Amazon Cash
> <https://techcrunch.com/2017/04/03/amazon-launches-amazon-ca
> sh-a-way-to-shop-its-site-without-a-bank-card/>
> – a way to shop its site with a debit or credit card. Instead, customers
> can add cash to their Amazon account at participating brick-and-mortar
> retailers.
>
> “The ability to shop online has been limited – it’s an underserved
> audience,” explains an Amazon spokesperson. “E-commerce companies
> haven’t figured out how to help customers who may be uncomfortable
> paying with credit cards. The thinking at Amazon is that there’s so much
> value [with Amazon Prime] – there’s so much time, convenience, and
> savings…we felt like this was one small way to help a customer that’s
> temporarily in need.”
>
> Customers can learn more about the program and sign up for a 30-day free
> trial at amazon.com/qualify. <http://amazon.com/qualify>
>
>
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