news and events at CAPREIT

News and Events

Return To Blog

Amazon Pitches to Low-Income Residents

|

This week likely stands to generate the largest volume of package delivery to apartment communities as Amazon holds its third annual Amazon Prime Day during a 30-hour period starting at 9 p.m. ET July 10.

Last year, Prime Day was Amazon’s biggest sales day ever, despite checkout glitches the site suffered during peak shopping hours. Package delivery volume already figured to climb this summer at affordable housing, B and C properties as a result of a discount offer recently made by Amazon.

The Amazon deal announced in June targets consumers with valid Electronic Benefits Transfer (EBT) cards, offering them a Prime membership for $5.99 per month, a drop from the standard $10.99 per month or $99 annual fee. Analysts suggest that the discount is designed to entice “Wal-Mart” shoppers and was crafted in response to the retail giant’s efforts to strengthen its e-commerce traffic.​

Package delivery volume could increase this year at affordable housing, B and C properties and off-campus privatized student-housing communities as a result of a discount offer recently made by Amazon.

The Amazon deal targets consumers with valid Electronic Benefits Transfer (EBT) cards, offering them a Prime membership for $5.99 per month, a drop from the standard $10.99 per month or $99 annual fee. Analysts suggest that the discount is designed to entice “Wal-Mart” shoppers and was crafted in response to the retail giant’s efforts to strengthen its e-commerce traffic.

Amazon says that nearly 20 percent of the U.S. population would qualify. Among those in that income category are participants in Temporary Assistance for Needy Families, Supplemental Nutrition Assistance Program and the Women, Infants and Children Nutrition Program.

Additionally, Prime membership includes a 20 percent discount on diapers and wipes subscriptions. Therefore, e-commerce could become an attractive option for low-income families seeking to save on gasoline costs for trips to and from retail centers and for those who do not have access to automobiles. Consumers averse to using credit cards also could benefit.

Additionally, July 10-11 will likely be a blockbuster sales day at Amazon when it holds its third annual Amazon Prime Day during a 30-hour period. Last year, Prime Day was Amazon’s biggest sales day ever, despite checkout glitches the site suffered during peak shopping hours.

“Affordable housing, class B and C properties see roughly 30 percent fewer packages delivered daily when compared to Class A properties,” says Georgianna W. Oliver, CEO of Package Concierge. “This news from Amazon will be a game changer and I would anticipate these properties will see their daily numbers grow to become closer to that of Class A.”

Renee Pulliam, CPM, CAPS, CAM, CGPM, HCCP, Senior Regional Property Manager, Community Housing Partners, Richmond, Va., says that regardless of residents’ income levels, the popularity of online shopping is growing.

Tamara Longo, Senior Manager, Artcraft Management, Richmond, says the convenience of services such as Amazon Dash and Hello Fresh will increase package delivery volume.

“When residents can literally push a button and have diapers, detergent or any number of household items immediately delivered to their door, the game is going to change,” Longo says.

Andrew Kadish, President of owner and manager CAPREIT, says, “It’s the ease of the transaction that Amazon has provided that is really valuable, and they're affecting a broader and larger segment of the population now. Amazon Prime truly revolutionized the online shopping experience, and with this, apartment operators can only expect package delivery to rise at an exponential rate.”

Read Full Article