Published: Mon, November 05, 2018
Finance | By Cynthia Curry

Amazon drops its $25 free shipping minimum for the holidays

Amazon drops its $25 free shipping minimum for the holidays

Amazon responded on Monday by dropping the $25 minimum order size to qualify for the retailer's free shipping perk. "With hundreds of millions of items available for free shipping to all Amazon customers and more than three million items available with Prime FREE Same-Day Delivery, customers can enjoy the largest selection of items that are fast and free". Walmart said it's adding millions more items to its free two-day shipping program, but kept its $35 minimum.

In addition, Amazon said the number of items available for free same-day delivery to Prime members now tops 3 million. Amazon will likely release sales numbers after the holidays, so it'll be quite interesting to see exactly how much the offer helps the company out.

Amazon Prime members still get unlimited free 2-day shipping on everything.

Amazon isn't the only merchant slashing shipping fees. Retail sales this holiday season are expected to rise by as much as 4.8 percent in 2018, according to the National Retail Federation, as the US economy continues to strengthen. That would be more than 12 percent of the $71.8 billion in sales that analysts now expect the company to report for the quarter.

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The announcement comes in the wake of free shipping promotions at Walmart and Target.

Just over half of all US households have a Prime subscription, analysts estimate. The spokeswoman said the company expects to announce that cutoff date later, after assessing customer demand and its logistics network.

And Prime members will be able to take advantage of Prime Wardrobe which is essentially a try before you buy service from the retail giant.

A few weeks ago, Target announced that it's going to offer customers free 2-day shipping during the holiday season, including Black Friday and Cyber Monday, with absolutely no requirements.

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