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For the first time since the launch of free shipping offers, Amazon will do without its minimum free order delivery threshold. Photographer: Ruhani Kaur / Bloomberg
The battlefield of free shipping to earn your holiday shopping budget is in full swing: for the first time since 2002, Amazon will ship orders for free US customers during the holiday season without requiring them to meet its usual obligations. $ 25 minimum order threshold.
The offer starts Monday and lasts for a limited time to ensure delivery in time for the Christmas holidays, said the online giant Seattle, adding that he had the largest selection of free deliveries in the UK with "hundreds of millions" of articles available. For its premium members, who already benefit from free shipping in two days for over 100 million items without placing minimum order, Amazon has announced that it has expanded the selection and geographic reach offered to the company. free shipping the same day to more than 3 million. articles – versus 1 million – in 8,000 cities for "tens of millions of Prime members," which represent the majority of its US Prime members, said a spokeswoman.
Amazon's latest initiative comes at a time when competitors such as Walmart and Target are redoubling their efforts in last-mile delivery, including buying or partnering with start-ups. By increasing their own free two-day game, Walmart and Target are trying to convince buyers that they can enjoy the same benefit without spending $ 119 for the annual membership of Amazon Prime, which, to be fair, includes other benefits, including Prime Video and Prime Music.
Walmart, for example, has partnered with startup Deliverr to extend free deliveries for two days to third-party vendors in the market. This growth is essential to increase the number of items sold by Walmart, thus offering customers the convenience of a one-stop shop. (Amazon generates more than half of its unit sales paid from third-party sellers). Walmart also opened a distribution center in the Bronx and exclusively uses the Parcel delivery system the same day it was delivered the same day to allow customers of its millennial urban game: Jet.com to schedule three-hour windows for one hour. delivery the same day or the next day.
Target, for its part, recently began offering free shipping for two days from November 1 to December 22 without the minimum purchase of $ 35 required. Walmart and Target are also part of traditional retailers that capitalize on their physical store fleets, many of which are much larger than those of Whole, Amazon. and touting services such as grocery shopping on the sidewalk to attract shoppers. (For example, Amazon's Whole Foods, which has fewer than 500 locations, can purchase Prime Now in 60 cities and process groceries to pick up about 10). Walmart recently announced that its collection points will increase to 3,100, compared with more than 1,800 announced in August. He also said he would expand grocery delivery to 1,600 locations, but plans to reach about 40% of the US population by the end of the year.)
To be sure, Amazon Rivals still have a long way to go. A Rakuten Intelligence study found that Walmart's and Target's market share was less than 2% in the first half, while Amazon's share of the US e-commerce market was down to 2% in the first half of the year. Amazon Fresh exclusion was 34%. The number of items that both retailers have in free shipping for two days is also much smaller than that of Amazon. (For example, the free delivery offer in two days of Target applies to "hundreds of thousands of items." Walmart lists "millions" of articles on its website .)
Nevertheless, attacks from rivals on all fronts exert pressure on Amazon. As a sign of growing concern, Walmart rivals could start stealing some of its thunder, Amazon stocks fell sharply after investors ignored third-quarter earnings much better than expected and focused instead on slowing e-commerce growth as well as disappointing earnings and sales prospects for the holidays.
Although Amazon has better control over its costs and uses robots, for example, in some distribution centers, to slow growth in the square footage of order processing centers, its latest salvo of dispatch does not will probably not be cheap. (And the same goes for other retailers.)
A good example: Although shipping costs in the third quarter worldwide have risen to the lowest level in at least six quarters, Amazon still recorded a 22% increase in shipping costs last month, for to $ 6.6 billion, almost double its $ 3.7 billion in revenue.
Related on Forbes: What to Withhold Income and Outlook from Amazon's Vacation for the Third Quarter
Linked to Forbes: Why Walmart Invests in a Startup Founded by Former Leaders of the Israeli Intelligence Unit
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For the first time since the launch of free shipping offers, Amazon will do without its minimum free order delivery threshold. Photographer: Ruhani Kaur / Bloomberg
The battlefield of free shipping to earn your holiday shopping budget is in full swing: for the first time since 2002, Amazon will ship orders for free US customers during the holiday season without requiring them to meet its usual obligations. $ 25 minimum order threshold.
The offer starts Monday and lasts for a limited time to ensure delivery in time for the Christmas holidays, said the online giant Seattle, adding that he had the largest selection of free deliveries in the UK with "hundreds of millions" of articles available. For its premium members, who already benefit from free shipping in two days for over 100 million items without placing minimum order, Amazon has announced that it has expanded the selection and geographic reach offered to the company. free shipping the same day to more than 3 million. articles – versus 1 million – in 8,000 cities for "tens of millions of Prime members," which represent the majority of its US Prime members, said a spokeswoman.
Amazon's latest initiative comes at a time when competitors such as Walmart and Target are redoubling their efforts in last-mile delivery, including buying or partnering with start-ups. By increasing their own free two-day game, Walmart and Target are trying to convince buyers that they can enjoy the same benefit without spending $ 119 for the annual membership of Amazon Prime, which, to be fair, includes other benefits, including Prime Video and Prime Music.
Walmart, for example, has partnered with startup Deliverr to extend free deliveries for two days to third-party vendors in the market. This growth is essential to increase the number of items sold by Walmart, thus offering customers the convenience of a one-stop shop. (Amazon generates more than half of its unit sales paid from third-party sellers). Walmart also opened a distribution center in the Bronx and exclusively uses the Parcel delivery system the same day it was delivered the same day to allow customers of its millennial urban game: Jet.com to schedule three-hour windows for one hour. delivery the same day or the next day.
Target, for its part, recently began offering free shipping for two days from November 1 to December 22 without the minimum purchase of $ 35 required. Walmart and Target are also part of traditional retailers that capitalize on their physical store fleets, many of which are much larger than those of Whole, Amazon. and touting services such as grocery shopping on the sidewalk to attract shoppers. (For example, Amazon's Whole Foods, which has fewer than 500 locations, can purchase Prime Now in 60 cities and process groceries to pick up about 10). Walmart recently announced that its collection points will increase to 3,100, compared with more than 1,800 announced in August. He also said he would expand grocery delivery to 1,600 locations, but plans to reach about 40% of the US population by the end of the year.)
To be sure, Amazon Rivals still have a long way to go. A Rakuten Intelligence study found that Walmart's and Target's market share was less than 2% in the first half, while Amazon's share of the US e-commerce market was down to 2% in the first half of the year. Amazon Fresh exclusion was 34%. The number of items that both retailers have in free shipping for two days is also much smaller than that of Amazon. (For example, the free delivery offer in two days of Target applies to "hundreds of thousands of items." Walmart lists "millions" of articles on its website .)
Nevertheless, attacks from rivals on all fronts exert pressure on Amazon. As a sign of growing concern, Walmart rivals could start stealing some of its thunder, Amazon stocks fell sharply after investors ignored third-quarter earnings much better than expected and focused instead on slowing e-commerce growth as well as disappointing earnings and sales prospects for the holidays.
Although Amazon has better control over its costs and uses robots, for example, in some distribution centers, to slow growth in the square footage of order processing centers, its latest salvo of dispatch does not will probably not be cheap. (And the same goes for other retailers.)
A good example: Although shipping costs in the third quarter worldwide have risen to the lowest level in at least six quarters, Amazon still recorded a 22% increase in shipping costs last month, for to $ 6.6 billion, almost double its $ 3.7 billion in revenue.
Related on Forbes: What to Withhold Income and Outlook from Amazon's Vacation for the Third Quarter
Linked to Forbes: Why Walmart Invests in a Startup Founded by Former Leaders of the Israeli Intelligence Unit
