Amazon adjusts its prices. Companies around the world have been making adjustments to their structures for several months, which are not only leading to layoffs but also to changed prices, shipping and return conditions, and even services. Now Amazon, according to shares on TechCrunch, will increase the minimum price for free shipping from $25 to $35 for users who do not have a Prime account.
The shipping policy change is being sample tested in the United States, as confirmed by a market spokesman: “We continuously evaluate our offers and make adjustments based on these evaluations. We’re currently testing a $35 minimum for non-Prime customers to qualify for free shipping. Prime members continue to enjoy free delivery on over 300 million items, with tens of millions of items available for free same-day or overnight delivery. Media outlet Ecommercebytes was the first company to share the information, noting in a Reddit thread that numerous people were talking about Amazon’s shipping rate hike.
A strategy Amazon will use to try and attract new subscribers to its Prime offering, where they currently pay $139 a year or $15 a month for free shipping and other perks. The Prime service launched in the US in 2005, but it wasn’t until 2011 that it really caught on. In 2018, it had 100 million subscribers, and in 2021, it will have about 200 million subscribers, but in recent years, these numbers have shown a slight increase.
Amazon Subscription Services, which includes Prime memberships, generated around 9,894 million dollars in sales, Up 18% sequentially.
Also, this isn’t the first time Amazon has changed the free shipping threshold for non-Prime members. In 2016, the threshold was $35 and was raised to $49, but it was corrected again the following year. Amazon eventually adjusted the threshold to $25, in part to compete with its main competitor, Walmart, which kept its threshold at $35. As a result, Both companies now offer the same benefit.
This change is also in line with the company’s most recent communications, in which They cut 27,000 jobs and stopped the setting. In addition, Prime members advantage of receiving fresh groceries at home completely free of charge will no longer apply. Now you have to pay shipping costs for purchases under $150. Another change was to reduce the number of private labels.