Amazon tests higher free shipping minimum for some non-Prime customers
The online retailer Amazon has raised the minimum order amount for free shipping from $25 to $35 for some customers who are not Prime members. Some customers who shop on Amazon without a Prime membership may have to pay more to get free shipping on their orders.
According to news reports, Amazon has been testing a new policy that raises the minimum order amount for free shipping from $25 to $35 for some customers. The change does not affect Prime members, who pay $14.99 per month or $139 a year for free shipping and other perks.
Amazon spokesperson Kristina Pressentin confirmed the change, but did not specify how many customers or which regions are impacted by it.
“We continually evaluate our offerings and make adjustments based on those assessments,” Pressentin. She added, “Prime members continue to enjoy free delivery on over 300 million items, with tens of millions of items available for free same or one-day delivery.”
One of the possible effects of increasing the minimum order amount for free shipping is that more customers may opt for the Prime membership program, which offers free, two-day delivery and other benefits. Prime members are a key source of revenue for Amazon, as the company reported having over 200 million Prime subscribers worldwide in 2021.
The subscription services segment, which includes Prime memberships, brought in about $9.9 billion in revenue in the latest quarter, according to Amazon’s earnings report.
The subscription services segment, which includes Prime memberships, brought in about $9.9 billion in revenue in the latest quarter, according to Amazon’s earnings report.
The online retailer has been looking for ways to reduce costs in different areas of its business. In the past year, it has cut over 27,000 corporate jobs and shut down some of its underperforming segments. It also stopped offering free grocery delivery for Prime members on orders below $150 earlier this year.
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