Amazon lower its free shipping threshold to $49
Amazon.com Inc. is raising the stakes in the shipping game. Since January, customers have had to spend $99 to qualify for free shipping at Amazon. Amazon announced today that it is reducing that level to $49 in what it calls a “long-term test.” Amazon will determine in three to six months whether to continue the offer.
One of the restrictions on free shipping is that Amazon reserves the right to hold orders until they can be consolidated into one shipment, thus eliminating split ships. Under that arrangement, Amazon can hold the order for three to five days until all the components of the order are ready.
The reduction is a reflection of the maturing of Amazon, observers say. “Amazon is looking at strategies to address seasonality,” says Duif Calvin, vice president of the retail practice for consultants Scient Inc. “Most traditional catalog retailers have something in place to boost summer sales. Amazon needed something as well. This is another example of Amazon maturing as a retailer.”
Further, Calvin says, Amazon needed to respond to Barnes&Noble.com’s free shipping with the purchase of two or more items.
Calvin says Amazon faces the challenge of communicating the terms of free shipping to customers since free shipping does not apply to purchases at ToysRUs.com or at the Target shop at Amazon, both of which Amazon operates. "This could lead to a confusing customer experience," she says.
Back...
