Amazon Prime costs $12.99 a month, but not everyone will that much for it.
Amazon started offering discounts for EBT (Electronic Funds Transfer) card holders since June of 2017. These EBT cards are the primary way that SNAP (food stamps) recipients access their benefits. On March 7, 2018, Amazon started offering this discount to Medicaid recipients as well.
Amazon only charges $6 a month for qualifying low income customers, a significant discount.
A typical Amazon Prime member can pay for Prime in two formats; month-to-month at $12.99, or $100 for an annual membership (translates to about about $8 a month). Plus there is the free 30-day trial of Amazon Prime to preview before committing to a subscription. EBT or Medicaid recipients can simply verify their status with Amazon by taking a picture of their card, then sign up for Prime at the discounted rate.
The benefits of a Prime subscription perks include free two-day shipping, free video streaming, and access to the ‘Prime Now’ 2-hour delivery service. Many of these potential customers have a lower income than Amazon’s traditionally well-off Prime members. However, these lower income customers spend money too, and as Amazon moves forward into its fresh grocery and household essentials business, the convenience of these services may drive them to Amazon instead.