Amazon hikes the minimum price to avail free shipping by $14 to $49 per order.
Amazon Inc. is known for its low prices and razor thin margins. The company offers millions of items at lower prices when compared to its domestic rivals in the market including Wal-Mart and eBay, etc., but in order to avail its numerous advantages which include free two-day shipping plan, direct access to audio and video streaming service, and much more. All the customer will have to do is get one of its Prime memberships to enjoy its perks.
Amazon Prime offers free delivery to all of its members whereas the non-Prime members cannot avail this option. According to the news published in Seattle Times, the ecommerce company has raised the amount for the non-Prime members if they are looking for free shipping.
Previously, online shoppers had to make their total bill up to $35 per order if they had no desire to pay for the shipping. Reportedly, online shoppers will now have to pay $14 more for free shipping. The online retailer has increased the threshold to $49 now for all non-Prime members.
Amazon constantly emphasizes on its Prime membership and encourages its customers to opt for one. It has vowed to make sure that every penny spent on the membership will be worth it. The subscription costs $99 for one year, which is a fair deal if the price is broken down with respect to per month.
Amazon.com always wanted to promote its loyalty program and wanted more members aboard. Another attempt to make it happen can be costly and it surely is a gamble. If someone is not a Prime member, the price for not being a member has just hiked. The change in the minimum price to avail free shipping is effective immediately as per the company.
Those online shoppers who are avid reader can still save money while shopping at Amazon.com. The order of books worth at least $25 will not include shipping charges and will be delivered free at the customers’ doorsteps. This option is also available for the audio books on CDs.
Reports suggest that the $14 increase is because of the multibillion-dollar logistics bill generated by business every year. Last year, the company incurred nearly $5 billion in net shipping costs, which is a 19% increase when compared to last year’s net shipping costs.
As the non-Prime members will have to pay $50 on every order to avail free shipping, Amazon Prime membership becomes a compelling and an interesting offer. It is better to pay $99 for one year than $50 on every single order every now and then. The spokeswoman of the online retailer, Ana Rigby, stated that the company keeps on reassessing its shipping options from time to time.
So far, Amazon has not disclosed any numbers regarding members in its loyalty program but reported a massive 47% jump in the user growth in the United States in past year. This surpassed the 35% growth expectation made by Consumer Intelligence Research Partners (CIRP). The CIRP estimates that the Prime program has 54 million American members aboard.
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