Published: Mon, November 05, 2018
Finance | By Gustavo Carr

Amazon waives minimum requirement for holidays

Amazon waives minimum requirement for holidays

Amazon is making more than three million items eligible for same-day delivery for the holidays. It's hard not to say that Amazon's the one driving this bus, since the company has millions of people paying the company a tidy sum each year for their own version of free shipping (among other services, such as streaming video and music). Free two-day shipping has always been the core benefit of the Amazon Prime program, which costs $119/year.

During the sale, Amazon will be hosting a Home of Black Friday pop up store "that will showcase the very best of Black Friday". 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.

The U.S. -only promotion, effective from November 5, waives the $25 minimum that customers outside Amazon's Prime loyalty club must hit for free shipping.

Amazon may receive more orders as a result of the promotion, which could end up offsetting some of the increased expenses.

Amazon did not announce a cutoff date for the promotion, but said that free shipping will be available for all orders arriving in time for Christmas.

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The free shipping will probably help boost sales quite a lot, especially since it's the holiday season.

"They're forcing Amazon to react", Wedbush Securities analyst Michael Pachter said.

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. In the wake of Walmart's change, it lowered the threshold twice that same year: to $35, and then to the current non-promotional threshold of $25.

Amazon made another aggressive move against rivals Monday in the quest for online shoppers.

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