If Amazon is satisfied with a new test, non-Prime members will have to pay a minimum of $35 on orders to receive free shipping, reports retail analyst group PYMNTS.
The previous qualification for free delivery for non-Prime members used to be $25. The move comes as Amazon looks for ways to cut costs and streamline operations, CNBC reported.
Moving the free-shipping minimum to $35 could motivate more shoppers to become Prime members, which costs $139 a year and includes free two-day shipping on all orders.
Amazon has toyed with the purchase minimum in the past. In 2016 it was as high as $49, but the decision was made to drop it to $25 to compete with Walmart, which has a $35 purchase minimum for free delivery.
PYMNTS research indicates free shipping is the top reason why shoppers use the Prime membership. The group’s study “Walmart+ Weekend: Prime rival or Trip to the Grocery Store?” indicates that 84% of Amazon shoppers said the reason they have Prime is due to the shipping perk.
By 2024 there is projected to be 180 million Prime members in the U.S.
Amazon has also been trying to lure non-Prime members with other offerings this year.
In early August, Amazon Fresh began offering delivery for shoppers in select metro areas who are not signed up for its premium service. The offer is available in Austin and Dallas-Fort Worth, Texas; Boston, Mass.; Charlotte, N.C.; Denver, Colo.; Nashville, Tenn.; Phoenix, Ariz.; Portland, Ore.; Richmond, Va.; and Sacramento, San Diego, and San Francisco, Calif.
