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Amazon Raises Free Shipping Threshold to $49

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Renee DanielsGuest Blogger
February 20, 2016 · 178k Views
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Amazon has raised the free shipping threshold for free Super Saver shipping to $49. The threshold was raised from $35, which is a $14 increase and the largest. This is the second time that Amazon has raised the free shipping threshold since it was raised to $35 in 2013 from the original $25 threshold that was held for many years, a $10 increase. Books will ship for free on orders of $25 or more.

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What about Amazon Prime?

Amazon Prime continues to offer free 2-day shipping on all orders with no minimum purchase. Shoppers can sign up for a free 30-day trial with no obligation to continue once the 30-day trial period has ended. Once the trial period is over, shoppers will be charged $99 for an annual membership. The free 30 days does not count towards your paid membership period as you will still get 12 full months of membership once you pay. The price of Amazon Prime was raised back in 2014 from $79 only about 6 months after the Super Saver shipping threshold was raised. It is unclear at this time if the cost of Amazon Prime will increase as a result of the increase in the Super Saver shipping threshold.

How it Affects E-Commerce

Why does this matter? The increase likely means that competitors follow the same trend. Best Buy currently offers free shipping on orders of $35 or more, which was raised from the $25 threshold following the original Amazon increase. Walmart has offered free shipping on orders of $50 for years, so it will be interesting to see how the competition fares now that Amazon and Walmart offer almost the same shipping requirements, especially because Walmart offers free in-store pickup with no minimum purchase. Kmart and Sears lowered their threshold from $59 to $35 to match Amazon, but may soon raise it again. Office Depot lowered their threshold from $50 to $35 as well. Walgreens and Groupon also raised their free shipping threshold to $35 from $25 following Amazon's first increase.

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RichFrugalFeb 22, 2016
Oil is down. Gasoline is down. Cost of shipping (minimum purchase) should also go down, right?
tian_zFeb 24, 2016
Totally Agree
Bill_MurrayFeb 25, 2016
It doesn't necessarily mean that jet fuel is down. A lot of companies have contracts, since fuel was so high. I'd look into USPS' situation, since they are the primary shipper. Though, Amazon is going to ship themselves within the next couple of years (they're already getting the planes).
abda0577Feb 22, 2016
I guess I will just stick to using Target for online shipping since it is totally free if you have their Redcard which is also free. I also use Walmart with free store pickup as another option, anything to get free shipping which the cost for shipping is getting ridiculous. Amazon will starting losing more customers if they keep raising their shipping prices but I guess they don't care about that!
whatsurdealFeb 20, 2016
I'm not worried too much about Amazon since I have Prime. I'm just worried that everyone else is going to raise it too!
juillet27Feb 20, 2016
Very good point. This might start a trend of raising the minimum, instead of the current competition to lower it :(

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