Instant Alert: Amazon has a 'budget-friendly' Prime option for low-income customers — but it may actually be a trap

MANAGE SUBSCRIPTIONS   |   UNSUBSCRIBE   |   VIEW ONLINE   Amazon has a 'budget-friendly' Prime option for low-income customers — but it may actually be a trap by Mary Hanbury on Jan 19, 2018, 1:41 PM Advertisement Amazon is raising Prime membership fees for people who pay monthly. The increase will be from $10.99 to $12.99 per month. This is likely to impact its low-income shoppers who can't afford the one-time annual membership fee.  Amazon Prime just got more expensive for some of its members.  Today, the online store announced it would be increasing monthly Prime membership rates from $10.99 to $12.99, which comes to around $156 a year.  Amazon Prime is a subscription service that offers its paying members services such as free two-day shipping on certain purchases and unlimited streaming of movies and TV shows with Prime Video.  These changes are likely to impact its lower-income shoppers who can't afford to pay the one-off price of $99 for a year-long membership.  Moody’s Lead Retail Analyst Charlie O’Shea said in a statement that Amazon's monthly deal "still affords members a more budget-friendly option, with the ability to ‘flex’ the membership as they see fit.” But she also noted that the new increase means that monthly subscription members will be paying a 57% premium over yearly members – at nearly $60 extra a year. Amazon does not disclose how many of its members pay on a monthly basis versus yearly, but this price increase could encourage customers to switch and pay the one-off annual fee. However, this isn't an option if you don't have the disposable income to cover it.   A survey of 7,000 people across America done by GoBankingRates in 2016 showed that as many as 34% of people have no savings, 69% has less than $1,000. Amazon's price increases seem to be going against the grain of its initiative last year to offer a cheaper membership to shoppers on government assistance. Customers with an Electronic Benefits Transfer (EBT) card can now qualify for a reduced $5.99 monthly membership. These rates have not been changed. SEE ALSO: Monthly Amazon Prime memberships just got more expensive   Share the latest business news with your network:    Email sent to: nguyenvu1187.love5@blogger.com   |   Manage your email preferences   |   Unsubscribe Terms of Service   |   Privacy Policy Business Insider. 150 Fifth Avenue, New York, NY 10011