Amazon, the popular e-commerce giant, has announced a new change in its shipping policy. Starting from now, customers who don’t have a Prime membership will have to meet a higher minimum purchase amount in order to qualify for free shipping. The minimum has been increased from $25 to $35 in selected regions, as reported by CNBC. This move aims to encourage more customers to subscribe to Amazon Prime, the company’s premium membership service.
Key Takeaway
Amazon has raised its free shipping minimum to $35 for non-Prime members in specific regions, as part of its strategy to promote its Prime subscription service.
Amazon has confirmed that the new free shipping threshold is being tested in randomly selected ZIP code-grouped regions. Customers within the same region will all see the same minimum purchase requirement for free shipping. This change does not affect Prime members, who continue to enjoy free delivery on more than 300 million items, including tens of millions of items eligible for Same or One-Day Delivery.
This is not the first time that Amazon has adjusted its free shipping minimum. In 2016, the threshold was raised to $49, only to be lowered back to $35 in 2017. This latest increase brings Amazon in line with its competitor Walmart, which also requires a $35 minimum purchase for free shipping.
The decision to raise the free shipping threshold may be seen as a cost-cutting measure by Amazon, as the company has been exploring ways to streamline its operations and reduce expenses. This year, Amazon has cut 27,000 jobs and put a freeze on corporate hiring. They have also implemented delivery fees for Fresh grocery orders under $150, removed the free delivery perk for Prime members ordering below $35, and discontinued their AmazonSmile donation program.
In conclusion, Amazon’s recent decision to increase the free shipping minimum to $35 for non-Prime members in certain regions reflects the company’s continuous evaluation of its offerings and its effort to promote its Prime membership service. As Amazon competes with other e-commerce giants, this adjustment aligns its shipping policy with that of Walmart and may contribute to cost-saving measures across the company’s business.
