Amazon Prime's $5.99 monthly discount has industry experts puzzled, but the company's newest strategy is one to take notes on.<br />Prime plans to target lower-income customers who receive government assistance through the Supplemental Nutrition Assistance Program, or food stamps.<br />Since Amazon has over 70 percent of upper-income households hooked to its services, it's expanding its growth to other markets for continued success.<br />Retail industry consultant Doug Stephens explained the appeal of the service saying, "Prime is the gateway drug for the heroin that is Amazon.<br />If this can get new people into the Amazon ecosystem, it's very sticky."<br />Prime members were also reported to spend 2.7 times more than regular Amazon users, and people renew their membership at a rate of 96 percent.<br />The company's biggest competitor is Walmart, who makes 1 out of every $5 in SNAP benefits, so appealing to a different market would send the message that Amazon is not to be rivaled with.
