SUAB HMONG NEWS (02/22/2016) — If you are one of the people who order things online through Amazon and you are a non-Prime, you will be affected on the raising of Amazon’s new requirement the minimum order total dollars to qualify for free shipping.
Based on an article by fortune.com, Amazon is now requiring online shoppers to spend at least $49.00 in order to qualify for free shipping, up from $35 previously.
Amazon last raised the minimum spending requirement in October 2013, when it went from $25 to $35. That revenue can help offset the costs of shipping, which totaled $11.5 billion in 2015.
Of course what Amazon is likely hoping is that the higher spending requirement will result in more customers opting to buy the e-commerce giant’s Amazon Prime program. Prime costs $99 a year with no minimum requirement for free shipping.
At this point, Amazon’s minimum purchase requirement for free shipping isn’t as compelling of an offer as some key competitors. Best Buy ( BBY -2.60% ) sets the minimum at $35, and Target’s ( TGT -0.29% ) is $25, while Walmart’s ( WMT 0.84% ) is $50.
The move by Amazon comes just a few weeks after the company reported 2015 net sales jumped 20% to $107 billion. Profit for the online retailer still remains razor thin, as net income over for the year only totaled $596 million.
Source of the article can be found at this link: http://fortune.com/2016/02/22/amazon-free-shipping/