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Amazon gives teens shopping independence

Amazon gives teens shopping independence

Amazon (AMZN) now wants teenagers to shop on their own without mom and dad chiming in.

Fortunately, Amazon offers a solution to this problem with new accounts just for teens ages 13 to 17.

Afterwards, the teen will log into the Amazon App using their own username and password.

But there's a catch.

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The second way has parents giving their teens monthly spending limits so their Amazon shopping doesn't get out of hand. "We've listened to families and have built a great experience for both teens and parents", said Michael Carr, Vice President, Amazon Households, in a statement about the launch. (An annual Amazon Prime Student membership costs $49, compared with $99 for regular members.) Amazon, which had annual revenue of $136 billion a year ago, accounts for roughly one-third of all online US sales. To get started, parents can visit amazon.com/forteens or sign up via a text or email invitation from their teens. Parents can review each item, its cost and the payment method being used before finalizing the transaction.

Finally, the parent can either approve or deny the order by text. But for parents who don't want to review everything in advance, the option to set pre-approved spending limits is available, too. Parents are shown the item, how much it costs, and similar details, as well as any note about it the teen may have made. If there's a mistake in ordering, parents will be able to cancel and return any item as long as it meets Amazon's policies.

The next step for Amazon would be to make it easier for teens to use this cash, perhaps by configuring a digital allowance parents can dole out to teens' accounts. Teens will also have access to features like Prime Video and other "select" benefits typically associated with Amazon Prime (like Twitch Prime), meaning they're essentially getting a potential five-year trial run of their own full Prime account.

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