May 6th, 2015
Amazon Doubles Its Spending Fee for Free Delivery
Free delivery is one of the perks of shopping on Amazon, but not for much longer! Last week, the company announced that its customers would need to spend £20 to qualify for free super saver delivery.
Over the years Amazon has become one of the most popular online marketplaces in the world. Millions of people use the site each month to buy and sell a wide range of products, from shoes and coats to DVDs and games.
The new changes will apply to the majority of Amazon products including toys, clothes and electronics. The only exception is for orders that include £10 or more of books, which will still qualify for free delivery.
If orders don’t reach the £20 minimum, customers will have to pay for the cost of first-class postage. This is usually between £2 and £5, depending on the size and weight of the item.
Originally, the company didn’t have a minimum spend for free delivery but in 2013 they introduced a minimum of £10.
It is thought that this is an attempt to sway customers towards paying for the subscription service. Amazon Prime costs £79 for a year and gives next day delivery on many products as well as access to its video streaming service.
Steve Mader, from the Kantar Retail Consultancy said that “There is always a pressure on Amazon from its investors to increase profitability, but I think the bigger factor is trying to shepherd people into Prime membership as well as improving the margins on each basket.”
“What we have seen when it increased the minimum threshold in a couple of other markets is that there isn’t a significant decrease in the amount of transactions that take place because of the convenience it offers.”
Last month the company reported its first drop in international revenue in at least 9 years. The latest changes may help them to save money but by getting rid of the free delivery, customers might be tempted to start shopping elsewhere.< Back to Blog