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Amazon offers free shipping for everyone through the holidays

05 November, 2018, 23:08 | Author: Shawna Walton
  • Amazon will offer free shipping on holiday purchases

It's $49 free shipping threshold didn't last long after Walmart unveiled its policy of free two-day shipping with every order $35 or more in January 2017.

Amazon says it will offer free holiday shipping to all of its customers on hundreds of millions of items, a potentially costly competitive move created to keep pace with similar moves by the company's retail rivals.

The offer will be incredibly beneficial for Amazon, and although it has more than 100 million Prime subscribers, a majority of its customers continue to be non-Prime subscribers. One analyst, Colin Sebastian of Baird Equity Research, said the offer could shave 5 percent to 6 percent off Amazon's operating profit this quarter.

With the all-important holiday season kicking off around Thanksgiving later this month, retailers are jockeying for customers' dollars and hoping to outpace Amazon, which takes up almost 50 cents of each dollar spent online in the US.

Still, the news could help Amazon win more sales. 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.

While this is certainly a move by Amazon to compete with Target and Walmart, it doesn't match their offers.

Today Amazon announced that they are offering free shipping to everyone in the United States with no minimum purchase needed. Both Target and Best Buy are offering similar promotions. In both cases, the advantage over Amazon was no paid subscription required to qualify for free shipping.

Amazon Prime members will receive a number of handy benefits during the Black Friday Sale.

The offer, the company said, applies to "hundreds of millions" of items.

It marks the first time Amazon has removed the minimum order requirement for its free super-saver shipping tier.

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