Amazon raises minimum order for free shipping to $49 from $35
Amazon raised the minimum order size to $49 from $35 for free shipping on its online store.
The move is likely to drive sales to its Prime service that offers free two-day shipping and access to music, video, and ebook content. Amazon charges $99 per year for access to Prime.
The move comes after fulfillment costs jumped 33 percent in the fourth quarter, doubling the 15 percent increase in product sales, as Bloomberg points out. It's likely Amazon is looking to reduce these costs while at the same time pushing users to its paid service.
Now Amazon's free shipping threshold is the same as Walmart. Amazon previously raised the threshold to $35 from $25 in 2013.
The move comes at a time when Amazon is rumored to have plans to launch a global shipping and logistics operation that will compete with UPS and FedEx.
We have reached out to Amazon for more info.