Higher Threshold for Free Shipping

Higher threshold

On October 21, Amazon.com announced that it was altering its minimum order size to qualify for free shipping. Instead of the $25 minimum customers have been accustomed to for 10 years, the amount is now $10 higher. While the new $35 minimum order size represents a 40 percent increase from the original amount, the change is unlikely to dilute consumer interest in making purchases online.

The ease, convenience, and selection of items available for purchase over the digital Internet counter typically dwarfs that traditionally offered by brick and mortar stores. As the economy continues to adapt to the current environment, consumers are likely to continue shifting more of their purchases to online stores. According to Forrester Research, online shopping is expected to reach $370 billion by 2017, up from an anticipated level of $262 billion this year. That represents an impressive growth opportunity for e-retailers, and an even greater selection of products for customers as a direct result of the expanded marketplace.

As the value and accessibility of the online marketplace continues to entice more customers onto the web, increasing the size of a minimum purchase order to qualify for free shipping is more likely to improve an e-retailer’s bottom line than to diminish it.

Did the increase in minimum order size to qualify for free shipping impact your decision to make a purchase at Amazon.com this holiday season?

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1 Comment

  1. PO clerk

     /  December 28, 2013

    I actually didn’t order from the internet this year so it didn’t have an impact on my shopping for this year. However, having said that, I have done Christmas shopping other years and I know that I will in the future. And no, the $35 minimum will not influence my shopping at Amazon.com because if I am a little short, I can always order some household items that I use every day to make up the difference.

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