Amazon Jumps in With Its Own Holiday Free Shipping Offer

Randal Sanchez
November 5, 2018

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.

"Free shipping is one of the easiest promotions to execute for a retailer, and is certainly popular among consumers, however it is a very costly initiative to undertake", Moody's Lead Retail Analyst Charlie O'Shea said in a statement.

"Amazon's move to give free shipping for all this holiday supports [the] thesis that retailers are catching up on Amazon with supply chain speed, fulfillment and delivery", Konik wrote.

Amazon won't be sidelined by brick and mortar stores this holiday.

Typically, Amazon has a $25 minimum order amount for non-Prime members to get free shipping. This year, both Walmart and Target made a decision to beat Amazon on shipping, but Amazon just responded with its own shipping offer.

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

Last month, Walmart added free two-day shipping for Marketplace items to its previous offer of free two-day shipping for purchases over $35.

Instead of the usual $25 order minimum before shipping and taxes, Amazon is offering free shipping almost all orders shipped and sold by Amazon.

Amazon has seemingly reacted to pressure from rivals before. The same week, Walmart announced that two-day shipping would be free for Marketplace items. Before, the purchase threshold was $25.

The war for online holiday shoppers is already off to a roaring start, and Amazon is preparing to take the lion's share of online shopping again this season. Analysts estimated that Amazon took almost half of all online retail sales in 2017, and that it will account for even more this year.

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