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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 Cypherdude1 on 10/25/2013 12:59:44 AM , Rating: 2
Right now Amazon Prime is $79/year. Because Amazon has raised their standard Free Shipping threshold to $35, expect them to also raise their Prime membership fee.

A few months ago, I was surprised to learn Amazon has posted losses for a number of quarters. Amazon has just posted a net loss of $41M for the quarter ending September 30. A year ago Amazon posted a net loss of $274M.
http://www.bbc.co.uk/news/business-24665478

Amazon.com Inc. (AMZN)
http://finance.yahoo.com/q/is?s=AMZN

A few months ago, Amazon was going to delete all user photos and end displaying them. Apparently, because of customer protests, Amazon changed their minds.
http://tinyurl.com/customer-images-gone

Expect Amazon to continue finding areas to raise their prices and narrow their free services.


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