Amazon’s eyes are fixed on Walmart, making sure that the latter doesn’t outplay them, especially in the area of free shipping.
One proof of that is Amazon’s two successive reductions of their free shipping thresholds in a span of three months.
In February, the giant online retailer lowered the minimum amount which non-Prime members have to spend to qualify for free shipping from $49 to $35.
That came weeks after Walmart announced free two-day shipping, without member subscription, on orders worth at least $35.
Earlier this month, news broke that Amazon cut a further $10 from the minimum spending requirement for free shipping, so it’s now down to $25.
Although they did not officially announce the second reduction, Amazon updated the free shipping threshold on their website.
A blast from the past
This isn’t the first time that Amazon’s free shipping threshold drops to $25.
Up until 2013, non-Prime shoppers used to spend that amount to qualify for free shipping then Amazon started increasing it to promote their Prime program.
Amazon Prime members pay an annual subscription of $99 and get free two-day shipping on eligible items regardless of the total amount they’ve spent.
However, Walmart’s entry to eCommerce and new offerings left Amazon with no choice but to play their game or be outmanoeuvred.
It’s crystal clear that Walmart isn’t threatened by Amazon’s size, and they show it by aggressively luring shoppers to their marketplace with various gimmicks.
Just last month, Walmart launched a discount program which entitles customers who pick up their online purchases in-store to a special price cut.
Now isn’t that a sure-fire way of making customers happy and, for the most part, cutting down delivery costs?
How are you taking advantage of Amazon’s lower free shipping threshold?
Hope to hear from you in the comments.
To your continued success,
Dave & Matt