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Print 36 comment(s) - last by mindless1.. on Oct 26 at 6:17 PM

This will likely push customers to get Amazon Prime

Amazon has upped its free shipping minimum order to $35 just ahead of the holiday season. 

Amazon's free shipping minimum order has been $25 for the last decade, but the online retail giant has raised the minimum by $10 starting yesterday. This means that customers must purchase a minimum of $35 on eligible items and have it shipped to any address in the 50 states in order to receive free shipping. 

Amazon, which announced that the free shipping minimum order would increase around the holidays earlier this year, is likely trying raising the minimum to keep up with the competition. Retailers like Target and Wal-Mart offer free shipping on purchases over $50, for example. 

 
In the last three months of 2012, Amazon spent almost $1.8 billion USD on shipping. Clearly, shipping isn't cheap and the added $10 will help.

This is also likely an effort to push customers toward an Amazon Prime membership. It only costs $79 per year and offers free two-day shipping on all eligible items with no minimum order size. Prime members also receive access to the company's streaming movie and TV show library. 

Source: Amazon



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RE: parable
By The Von Matrices on 10/23/2013 5:26:30 PM , Rating: 2
Free shipping is bad. Free shipping raises prices for most people.

Sure, "free shipping" sounds great, but nothing is free; the shipping cost is part of the price of the item. And it's flat rate, so if I live next to the warehouse, I pay the same amount as someone in the middle of nowhere.

This is why calculated shipping is so much better. If someone chooses to live in a remote area, he or she should be forced to pay for the extra costs of delivering the item. Their extra costs should not be passed on to me and other buyers.


RE: parable
By Moishe on 10/24/2013 2:34:11 PM , Rating: 2
Yep. Free shipping is like insurance. We all get free shipping. Some of us save money that way and some of us lose money (we're paying for the shipping for another guy).

The real winner is Amazon because they get the instant upsell from people trying to find the extra $5 item to put them over the free shipping threshold. They also get the image that comes from offering something "for free" even though it's not.


RE: parable
By mindless1 on 10/26/2013 4:59:27 PM , Rating: 2
The problem with your idea is that Amazon has no incentive to change their shipping price model just to break even.

If they made such a change it would happen only to increase their profits which could mean that your shipping charge savings living closer to a distribution point might be very little if anything.

One of the smallest costs in getting a package from a warehouse to you is whether the delivery truck had to drive an extra two miles past the last delivery point, meaning that even in more remote areas delivery trucks often make runs, perhaps more often than you realize specifically because it is a remote region where more items are mailed and fewer bought at a local store.


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