Amazon reduces free shipping minimum again, down to $25
For the second time this year, Amazon has reduced the free shipping minimum on for orders of products shipped from an Amazon warehouse. Previously dropping from $49 to $35 during February 2017, Amazon has dropped the free shipping minimum from $35 to $25.
This move is likely part of an escalating price war between Amazon and Walmart. Walmart shifted to free two-day shipping on orders over $35 during January, thus Amazon responded the following month.
Last month, Walmart launched a new series of additional discounts on items that are picked up by customers, basically a reverse Amazon Prime. Amazon has been attempting to respond by lowering prices to match the shipping cost discounts, but Walmart has continued to increase the amount of the discount to beat Amazon’s prices.
While it’s possible that Walmart will respond to Amazon with a lower shipping minimum threshold to match, it’s more likely that Walmart will continue to increase the discount for picking up items. This strategy increases the number of people that visits a physical store, ideal for attracting additional purchases.