Amazon Increases Minimum Order Amount for Free Delivery

Amazon is doing a lot of daring moves when is comes to revolutionizing the world of online retail. It doesn't take a genius to know that Amazon is after it all, and is desiring to become the leader in not only on the retail front, but on the delivery and order fulfillment front also. Yet, the latest shift by the retailer for minimum online purchases in order to get free delivery could have a mixed response from Prime members.

The Wall Street Journal discussed the recent announcement by Amazon entails raising its' minimum order size for non-Prime members from $35 to $49 to qualify for free shipping. For at least a decade, Amazon's minimum fee was $25 until 2013, which the retailer increased the amount to $35. The threshold increase could be used to steer regular customers into becoming Prime members, which pay an annual $99 fee and receive unlimited two-day shipping.

In response to the fee hike, Amazon didn’t offer much of an explanation, yet only stated that “from time to time, we review our shipping options.” With it still being early in the year, the retailer could be testing the non-Prime customer market to see how many will become Prime members. There is plenty of time prior to the last quarter for the holiday season to offer the right shipping options to retain Prime members and gain more. The question is how will customers respond to it.

Free shipping isn't the only option that Amazon is offering that is attracting shoppers. In recent years, the company has implemented Same-Day Delivery in a number of major US cities nationwide. Amazon has a stronger presence of same-day delivery more than it ever has before. Amazon provides same-day delivery in the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, San Diego, Indianapolis, New York, Philadelphia, Phoenix, Washington DC, Tampa Bay, Baltimore, Boston, and Atlanta. It also launched free same-day delivery last year in 14 metropolitan cities the US, starting with California cities.

Even abroad, Amazon is affirming its goal to expand its delivery capabilities. It is being reported that Amazon is planning to develop a global delivery network to compete in China. Online retail is growing in the US, yet it is climbing at an even faster pace there. E-commerce is forecasted to reach $1 trillion by 2020 in China, which is all the more reason why Amazon is establishing its' fees relative to minimum orders and delivery systems. In addition, Amazon has leading China online retailer Alibaba to wrestle with in that market as well.

The largest US e-retailer has done a host of business implementations to capitalize on its momentum online. With Amazon's price shift, other retailers will probably analyze their own minimum order amounts and shipping options. A number of businesses and retailers have partnered with a Same-Day Courier like A-1 Express to create a delivery solution that will satisfy the need for fast delivery that shoppers demand also. The Los Angeles Courier can assist companies with fulfilling those orders, as the products per order increases, along with the minimum fee for free delivery.

Reference: 2.22.16, www.wsj.com, Greg Bensinger, Amazon Boosts Free-Shipping Minimum to $49, Elevating Prime Service