THING TO KNOW: Amazon makes you spend more to get free shipping

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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.
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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/

 
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