Report: Amazon tests raising non-Prime free shipping minimum to meet Walmart
Amazon customers who aren’t part of the Prime paid subscription service reportedly may have to pay more to receive free shipping on orders.
According to the E-commerce Bytes blog, since the beginning of August Reddit users have been posting about Amazon requiring them to purchase more than $35 worth of goods to receive goods, up from the $25 minimum the e-tailer previously charged.
Chief Amazon competitor Walmart currently charges a $35 minimum order for customers who are not members of its Walmart+ paid subscription program to receive free shipping on online orders. Members of the Amazon Prime subscription service, which costs $139 annually to join, will continue to receive free shipping on all eligible purchases regardless of total order cost.
Different Reddit users have posted about the increased Amazon free shipping minimum throughout different dates in August, but some users have indicated the higher free shipping threshold is not being uniformly applied to all Amazon shoppers at the same time.
In response to an inquiry from Chain Store Age, an Amazon spokesperson confirmed a test of the higher free shipping minimum is currently taking place.
"We continually evaluate our offerings and make adjustments based on those assessments,” the spokesperson said. “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 or one-day delivery."
Amazon is testing its $35 free shipping threshold by ZIP code-grouped region, according to Ecommerce Bytes.
Amazon reduces delivery costs
Amazon has been making efforts to reduce last-mile delivery costs, which can account for half of total shipping costs. Its new Amazon Hub Delivery program partners with small businesses to deliver Amazon packages in their local neighborhoods, expanding its capacity to make fast local deliveries without adding any infrastructure or employees.
And in May 2023, the e-tailer began providing a financial incentive for some Prime shoppers to forgo delivery of their orders. Media reports indicated Amazon has been emailing an “unknown number” of Prime members with an offer of $10 to pick up Prime shipping orders worth $25 or more at established pickup locations, such as Kohl’s or Amazon Fresh stores.
Since February 2023, the e-tailer has been charging Prime members varying service fees on Amazon Fresh delivery orders that are under $150.