Published: Tue, November 06, 2018
Money | By Bruce West

Amazon waives minimum requirement for holidays

Amazon waives minimum requirement for holidays

Amazon spent more than $7 billion on shipping in the fourth quarter past year, before subtracting the shipping fees it collects from customers.

Amazon already offered free 2-day shipping to Amazon Prime subscribers, which is why Target made free 2-day shipping for its customers.

Amazon.com Inc AMZN.O said on Monday it would offer free shipping with no purchase minimum for the first time this holiday season, heating up the competition with Walmart Inc WMT.N and other rivals vying for customers' Christmas shopping.

The move makes hundreds of millions of items eligible for free shipping. "We see Amazon on the defensive this holiday not traditional retail". Offering up free shipping with no minimum could be an attempt to gain more Prime users, but it also may be a tactic to ensure that competitors such as Walmart are less likely to take away sales.

Retailers are competing hard for holiday shoppers, who increasingly expect fast and free shipping. The company is temporarily offering free shipping to all customers-Prime or no-on all purchases, reports USA Today.

While Amazon's offer notably doesn't include two-day shipping, the e-commerce giant appears to be relying on its much larger assortment of goods to draw in customers.

Amazon also points out the extra advantages Prime subscribers get, including free Same-Day delivery on over three million products, as well as "in as little as an hour" deliveries and one hour grocery delivery or pickups in 60 cities. Before, the purchase threshold was $25.

Forrester estimates that online holiday sales will account for more than 32% of all online sales for the year.

Those who subscribe to the service will "have an exclusive 30-minute early access period to all Lightning Deals", Amazon explained.

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