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Amazon already owns the high-income shopper segment in the U.S. Now it's making a bid to court those who have less income at their disposal.
Amazon already owns the high-income shopper segment in the U.S. Now it's making a bid to court those who have less income at their disposal. On Tuesday, Amazon announced that it is offering a 45 percent discount on Prime memberships $5.99 a month instead of $10.99 month to U.S. residents receiving government assistance. Shoppers with an Electronic Benefits Transfer card used for benefits like the Women, Infants, and Children Nutrition Program are eligible for the lower price but they also have to re-qualify every year for up to four years. The move comes a little over a year after Amazon first introduced the $10.99 monthly payment option for Prime, which was previously only available for an annual fee of $99. The monthly option comes with the same perks like free two-day shipping on tens of millions of items and access to a large selection of online movies and TV shows for no extra charge. What factors may have caused the Amazon to lower its price for low-income households? Why is the Amazon requiring verification of low-income status? Use a graph to illustrate your
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