Amazon Targets Teens With "Amazon Allowance"

Amazon Targets Teens With "Amazon Allowance"

Amazon have launched an innovative way to increase revenue from teenage shoppers in the form of Amazon Allowance a new service that enables parents to fund their kids' online purchases.

Launched on the quiet in May 2015, Amazon Allowance offers parents the ability to fund an Amazon Gift Card which their children can spend directly on Amazon.

In Amazon's words "it’s an easy way to fund shopping on Amazon without sharing your account or credit cards."

Money can be added to the card in a one-off transaction or on a recurring basis and Amazon do not charge for using Amazon Allowance. Allowance funds do not carry an expiry date, so for more controlled children the piggy bank lives on in a new format.

Amazon Allowance

Amazon Allowance is available for young people aged 13 and up so some might see is as a good solution for parents helping their children with school purchases. Targeting teenage shoppers could be a shrewd move move for Amazon as establishing trust with this segment could lead to massive sales over the teenager's lifetime.

Can Amazon really change the allowances system?

So will parents really choose to deposit funds into an Amazon account rather than the traditional method of cash for chores or a regular cash payment? It certainly doesn't sit well with me to tell my child that they can buy what they like so long as its from Amazon.

Amazon however have a proven capacity to change the way consumers think and behave in the shopping space, so the initiative shouldn't be underestimated.

Topic: Ecommerce

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