Monday, November 11, 2013

Amazon Raises free shipping minimum order from $25 to $35

Amazon recently raised the amount ordered required from $25 to $35. While most would see this move as a negative digital marketing maneuver - it stands to reason that there is a strategy behind this move.

Amazon has not directly described the reason behind the move, but there are two reasons that most suspect.

Amazon Prime: It would seem that by raising the minimum threshold, Amazon is looking to convert more users over to Amazon Prime, a service that offers free 2-day shipping on orders of any size.

Drive more sales: Another potential reason Amazon may have raised the minimum-spend threshold is to drive sales to a new level for those spending only $25 per order.

Other theories include the very economics of shipping goods, although Amazon Prime seems to be pretty inexpensive relative to the amount ordered by customers, if losses generated by free shipping were the culprit

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