Amazon drops $25 free shipping minimum for holidays
05 November, 2018, 23:08 | Author: Kristi Dunn
But this is not for two-day shipping.
Amazon is waiving the minimum purchase requirement for free shipping, all in an effort to boost holiday sales and add new Prime members. More than three million items will be eligible for same-delivery. Deliveries typically arrive in five to eight business days.
With the all-important holiday season kicking off around Thanksgiving later this month, retailers are jockeying for customers' dollars and hoping to outpace Amazon, which takes up almost 50 cents of each dollar spent online in the US. Amazon spent more than $7 billion on shipping in the fourth quarter previous year, before subtracting the shipping fees it collects from customers.
Still, the news could help Amazon win more sales.
The credit ratings agency noted that in the fourth quarter of 2017 alone Amazon's shipping costs amounted to $7.4 billion.
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While this is certainly a move by Amazon to compete with Target and Walmart, it doesn't match their offers.
Amazon is following Target and temporarily dropping the minimum amount shoppers need to spend to qualify for free shipping. "Amazon's patient and seemingly profit-agnostic shareholder base provides the company with the flexibility to offer this type of costly promotion, which is a unique competitive advantage".
If anyone does not have Prime and wants to try it, Amazon is willing to offer free trials even while this free shipping promotion runs its course.
Prime members in the USA can also shop FREE Same-Day Delivery on more than three million eligible items!
The offer applies to "hundreds of millions of items", Amazon said, describing the perk as "the largest free shipping selection in the country". Walmart, arguably Amazon's biggest competitor in the USA, has kept its $35 minimum threshold for free shipping for this holiday season (so far, at least).
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