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Amazon drops free shipping, minimizes the rise of competition for holiday sales



  An employee is working to pick order items from storage shelves at the Amazon Fill Center in Kent, Washington, October 24, 2018.

Lindsey Wasson | Reuters

A co-worker is working to pick order items from warehouses at the Amazon Filling Center in Kent, Washington, October 24, 2018.

Amazon.com said on Monday that it would offer free shipping without a minimum for purchase for the first time This high season, the warming competition with Walmart and other rivals vying for the customers Christmas shopping sprees.

The only US campaign, effective from 5 November, denies a $ 25 minimum that customers outside Amazon's loyalty club Prime must meet for free shipping. The deal lasts until Amazon can no longer promise lasting for Christmas with free delivery, usually taking five to eight business days.

Announcement can help Amazon to maintain its fast sales growth. Shares from the world's largest online retailer were hammered last month after the slower increase in revenue since the beginning of 2016. The current quarter is typically Amazon's largest.

Amazon reduces the order minimum for free shipping to $ 25 from $ 35 Infinity in May 2017.

Monday's news will put pressure on Walmart and Target, which in recent years has fired away in Amazon's leadership with its own free two-way offer day shipping. While Walmart has maintained its ordering rule at $ 35 this holiday, Target has scrapped its minimum to December 22nd.

More than half of all US households have a premium subscription analysts estimate. Prime remains the cornerstone of Amazon's business because buyers buy more from the retailer when they pay $ 119 for the year-long membership. Perks include same day shipping and video streaming.

Amazon now claims those outside the club, hoping that the brand and wider range will differ from one another. Free shipping can apply to hundreds of millions of items on Amazon, against hundreds of thousands on Target. Target promises to deliver the goods faster.

It was unclear how free delivery on small ticket items would affect Amazon net income, which last month spuned improvements in efficiency.

According to the Seattle company's recent annual filing, shipping costs almost doubled from 2015 to 2017, reaching $ 21.7 billion.


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