New York – Amazon increased the threshold needed for non-members to qualify for free shipping as it seeks to add more people to its $99 annual Prime loyalty program.
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Non-members must now spend a minimum of $49, up from $35, to get free shipping. Members don’t have a minimum.
The Seattle company has long invested huge sums of money back into its businesses, particularly by expanding perks for Prime members. That includes one-hour delivery in some cities, beefed up video streaming and free e-books.
Investors, however, have grown impatient with some of those programs, which can cut into profits.
After the company boosted the minimum for non-member free shipping, shares of Amazon.com Inc. jumped 4 percent, the largest increase on the S&P 500 index.
I,for one, will be ordering less if that’s the case.
I realized while shopping. Was wondering about it. And I think it’s not fair. It’s a big jump.
Amazon, with its free shipping, destroyed huge swatche sof the American retail market. While Amazon used investors money to lose money and increase market share many small shops and even internet merchants could not ciompete.
Ultimately, this will be the new world. One way or another, customers will either pay shipping or buy enough so their purchase covers shipping.