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From Washington Post (subscription):
The company’s newest efforts are aimed at getting shoppers ages 13 to 17 to purchase items on its site — with approval from their parents. Teens can now log into Amazon.com using their own accounts to buy items and stream videos. Their parents, meanwhile, can approve their purchases by text message or set spending limits per order.
From a business perspective, this makes a ton of sense in developing the next generation of shoppers hooked on Amazon:
“Teenagers are at least as comfortable buying things online as their parents are, so it makes sense to go after them directly,” said Jan Dawson, chief analyst at technology research and advisory firm Jackdaw. “This is a move that will get families deeper into Amazon, while also cultivating future Prime members.”
The company also said this week that it will begin offering Prime memberships to college students for $5.49 per month. (An annual Amazon Prime Student membership costs $49, compared with $99 for regular members.) Amazon, which had annual revenue of $136 billion last year, accounts for roughly one-third of all online U.S. sales.
Here's how the program works (from Chicago Tribune):
Under the new program, shoppers age 13-17 can register on Amazon with their own login linked to a parent's account, and shop on their own using the company's smartphone app. For now, the function is limited to the app people won't be able to use it from a computer's web browser and to the U.S.
When it comes time to pay, they select a parent-chosen payment method not disclosed to the teen and, before the order is final, parents receive a text or email notification asking them to approve the purchase.
Parents can skip the approval step by setting spending limits.
Questions:
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Want more resources about retailing trends, check out this recent video, "What is the Future of Retailing?"
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Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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