(CTN News) – Due to the firm’s desire to cut costs as much as possible, Amazon has started increasing the free shipping minimum to $35 for non-Prime members in some markets, according to notices on its website.
In the past, the minimum purchase for free shipping has been $25, but that has changed now. It is expected that there will be no change to Prime subscribers who pay $139 a year for free shipping and other services.
An Amazon spokesperson, Kristina Pressentin, confirmed that the company is testing the use of a $35 minimum threshold for non-Prime members that are not Prime members.
As a result of these assessments, Pressentin said in a statement that the company continuously evaluates its offerings and makes adjustments accordingly.
Prime members continue to enjoy free delivery on over 300 million items, with tens of millions of items being available to be delivered for free on the same day or on the next day.”
It was found out by Ecommercebytes, one of the e-commerce newsletters, that the test had been carried out.
As a result of slowing sales and an uncertain economic outlook, Amazon CEO Andy Jassy has initiated a wide-ranging review of the company’s expenditures.
As a result, Amazon has cut 27,000 jobs, frozen corporate hiring, and paused some experimental projects or even canceled them.
As a result, the company has also begun charging a delivery fee on Fresh grocery orders that are under $150, as well as charging a fee on returns at UPS stores for orders under $150.
The raising of the free shipping threshold could be an incentive for more shoppers to sign up for Amazon’s Prime membership program, which includes free, two-day delivery, access to streaming services, and many other benefits. In the year 2021, Amazon announced that it had more than 200 million Prime subscribers worldwide.
According to Amazon’s latest quarterly earnings report, it generated about $9.9 billion in revenue from its subscription services, which included Prime memberships.
There has been a slight change to Amazon’s free shipping threshold in the past for people who do not have Prime memberships.
After raising the minimum threshold from $35 to $49 in 2016, Amazon reverted back to the earlier threshold a year later before lowering the minimum to $25 in an attempt to compete with Walmart on price.
For shoppers that are not part of Walmart’s loyalty program, Walmart Rewards, there is also a $35 minimum for free shipping.