Amazon offers free shipping with no minimum order quantity in the face of growing competition

Amazon offers free shipping with no minimum order quantity in the face of growing competition

<div _ngcontent-c14 = "" innerhtml = "

For the first time since the launch of free shipping offers, Amazon is foregoing the minimum order for free shipping this Christmas season. Photographer: Ruhani Kaur / Bloomberg

The battlefield for high-speed, free-to-air shipping to win your holiday shopping budget is getting hotter: For the first time since the free shipping was introduced in 2002, Amazon is shipping US orders to Christmas customers for free at no charge Regular obligations must be $ 25 Minimum order threshold.

The offer starts on Monday and takes a limited amount of time to ensure on-time delivery for the Christmas holidays, Seattle-based online giant said, adding that it has the largest selection of free shipments in the US with "hundreds of millions" of available items , For its Prime members, who already qualify for the free two-day shipping of more than 100 million items without having to give up a minimum order value, Amazon announced that the selection and geographic reach for free shipping on the same day was over 3 Millions have been added to articles – of 1 million – in 8,000 cities and towns for "tens of millions of its premier members," representing the majority of US premier members, a spokeswoman said.

The latest move from Amazon comes at a time when rivals like Walmart and Target are doubling on their own last-mile delivery lines, including buying or partnering with start-ups for delivery or settlement. Walmart and Target want to convince shoppers with their own two-day free shipping game that they can enjoy the same benefit without having to spend $ 119 on Amazon Prime's annual membership, which, to be honest, is shared with others Benefits including Prime Video and Prime Music.

Walmart, for example, has partnered with startup Deliverr to develop the two-day free shipping service to its third-party suppliers. The growth of this is key to the growth of Walmart's properties to give customers the opportunity to offer one-stop shopping. (Amazon earns more than half of its third-party paid units). Walmart has also opened a fulfillment center in Bronx and will use its purchased same-day delivery package to enable customers from its urban millennial game: Jet.com can charge three hours for same day delivery or the next day plan on.

Target, for its part, has recently begun offering a two-day free shipping from November 1 through December 22, with no minimum purchase of $ 35 it normally requires. Both Walmart and Target are also among the retailers who use their physical store fleets, many of them much larger than Amazon Whole Foods. and advertising options like picking up the roadside to attract shoppers. (Amazon's Whole Foods, for example, with fewer than 500 locations, can deliver food in 60 cities via Prime Now and process approximately 10 groceries for pickup. Walmart said recently that the pickup locations will rise to 3,100, compared to more than 1,800 in August. It also said that it will expand the delivery of food to 1,600 locations. By the end of this year, about 40% of the US population will be reached.)

To be sure, Amazon The rivals still have a long way to go. A Rakuten Intelligence study found that Walmart and Target's market share was under 2% each in the first half of the year, while Amazon's share of the US e-commerce market excluding Amazon Fresh was 34%. The number of items that both retailers have for the two-day free shipping is also much lower than Amazon's. (For example, Target's free two-day shipping offer for this holiday is for "hundreds of thousands of items." Walmart lists "millions" of items on his website.)

Nevertheless, the onslaught of rivals on all fronts puts pressure on Amazon. In a sign of growing concern that rivals led by Walmart may steal some of their thunder from Amazon Stocks plunged recently after investors ignored much better earnings than expected in the third quarter. Instead, they focused on slowing e-commerce growth and the disappointing outlook for holiday earnings and sales.

Although Amazon has significantly improved its cost-cutting costs, it is using robots in some fulfillment centers, for example, to slow down the pace of Fulfillment Center space growth. The latest shipping salvo is unlikely to be cheap. (And that's the same for other retailers.)

An example of this is that despite third-quarter worldwide shipping costs, which have been the slowest in at least six quarters, Amazon's transportation costs still rose 22% to $ 6.6 billion in the last quarter, which almost doubled the operating income of $ 3.7 billion.

Regarding Forbes, what you should take away from the third quarter results and Amazon's holiday prospects

Forbes: Why Walmart is investing in a startup founded by former leaders of the Israeli intelligence section

">

For the first time since the launch of free shipping offers, Amazon is foregoing the minimum order for free shipping this Christmas season. Photographer: Ruhani Kaur / Bloomberg

The battlefield for high-speed, free-to-air shipping to win your holiday shopping budget is getting hotter: For the first time since the free shipping was introduced in 2002, Amazon is shipping US orders to Christmas customers for free at no charge Regular obligations must be $ 25 Minimum order threshold.

The offer starts on Monday and takes a limited amount of time to ensure on-time delivery for the Christmas holidays, Seattle-based online giant said, adding that it has the largest selection of free shipments in the US with "hundreds of millions" of available items , For its Prime members, who already qualify for the free two-day shipping of more than 100 million items without having to give up a minimum order value, Amazon announced that the selection and geographic reach for free shipping on the same day was over 3 Millions have been added to articles – of 1 million – in 8,000 cities and towns for "tens of millions of its premier members," representing the majority of US premier members, a spokeswoman said.

The latest move from Amazon comes at a time when rivals like Walmart and Target are doubling on their own last-mile delivery lines, including buying or partnering with start-ups for delivery or settlement. Walmart and Target want to convince shoppers with their own two-day free shipping game that they can enjoy the same benefit without having to spend $ 119 on Amazon Prime's annual membership, which, to be honest, is shared with others Benefits including Prime Video and Prime Music.

Walmart, for example, has partnered with startup Deliverr to develop the two-day free shipping service to its third-party suppliers. The growth of this is key to the growth of Walmart's properties to give customers the opportunity to offer one-stop shopping. (Amazon earns more than half of its third-party paid units). Walmart has also opened a fulfillment center in Bronx and will use its purchased same-day delivery package to enable customers from its urban millennial game: Jet.com can charge three hours for same day delivery or the next day plan on.

Target, for its part, has recently begun offering a two-day free shipping from November 1 through December 22, with no minimum purchase of $ 35 it normally requires. Both Walmart and Target are also among the retailers who use their physical store fleets, many of them much larger than Amazon Whole Foods. and advertising options like picking up the roadside to attract shoppers. (Amazon's Whole Foods, for example, with fewer than 500 locations, can deliver food in 60 cities via Prime Now and process approximately 10 groceries for pickup. Walmart said recently that the pickup locations will rise to 3,100, compared to more than 1,800 in August. It also said that it will expand the delivery of food to 1,600 locations. By the end of this year, about 40% of the US population will be reached.)

To be sure, Amazon The rivals still have a long way to go. A Rakuten Intelligence study found that Walmart and Target's market share was under 2% each in the first half of the year, while Amazon's share of the US e-commerce market excluding Amazon Fresh was 34%. The number of items that both retailers have for the two-day free shipping is also much lower than Amazon's. (For example, Target's free two-day shipping offer for this holiday is for "hundreds of thousands of items." Walmart lists "millions" of items on his website.)

Nevertheless, the onslaught of rivals on all fronts puts pressure on Amazon. In a sign of growing concern that rivals led by Walmart may steal some of their thunder from Amazon Stocks plunged recently after investors ignored much better earnings than expected in the third quarter. Instead, they focused on slowing e-commerce growth and the disappointing outlook for holiday earnings and sales.

Although Amazon has significantly improved its cost-cutting costs, it is using robots in some fulfillment centers, for example, to slow down the pace of Fulfillment Center space growth. The latest shipping salvo is unlikely to be cheap. (And that's the same for other retailers.)

An example of this is that despite third-quarter worldwide shipping costs, which have been the slowest in at least six quarters, Amazon's transportation costs still rose 22% to $ 6.6 billion in the last quarter, which almost doubled the operating income of $ 3.7 billion.

Regarding Forbes, what you should take away from the third quarter results and Amazon's holiday prospects

Forbes: Why Walmart is investing in a startup founded by former leaders of the Israeli intelligence section

Leave a comment