1. raises free shipping threshold
Following the increase in multiple sites of Prime membership service subscription fees, Amazon's price increase "broadsword" and swing to non-Prime members.
Recently, Amazon USA increased some users on its shopping site to enjoy free delivery service consumption amount, non Prime members of the Amazon users now need to spend 35 dollars to enjoy free mail service, and before that the minimum consumption amount is 25 dollars.
Amazon spokesman confirmed the news Kristina Pressentin, saying that "the company is testing free shipping for non-Prime members with a minimum consumption of $35. Prime members continue to enjoy free shipping on more than 0.3 billion items". This means that the adjustment will not affect its member users.
It is worth mentioning that the minimum free shipping amount of US $35 has not been fully popularized. The free-mail threshold in Seattle, where Amazon is headquartered, is still $25, while non-Prime customers in nearby Bellevue must spend $35 to get free shipping. Whether it will be implemented nationwide in the future may depend on the results of this test.
in fact, this isn't the first time Amazon has changed the threshold for free shipping. Back in 2016, it raised the free shipping threshold from $35 to $49, restored it to $35 in 2017, and then lowered it to $25, and now it's up again to $35.
From this point of view, the free delivery threshold is neither all the way down, nor has it been rising, nor has it always been flat. Such repeated changes, the reason is really intriguing.
What are the 2. reasons?
, as an industry giant that has been fighting e-commerce for many years, Amazon has its own plans for every step it takes. Repeated adjustments on the threshold of free mail seem to be disorderly, but in fact there are traces to follow.
currently, Amazon is holding high the banner of reducing costs and increasing efficiency. At this time, raising the threshold of free shipping is also an important part of its cost-cutting plan. Frankly speaking, judging from Amazon's series of actions, it is very eager to break out of the business quagmire.
after laying off about 27000 employees since the end of last year, Amazon plans to lay off hundreds of employees in the fresh e-commerce department, eliminating the position of "regional leader" in the fresh e-commerce department. Earlier this year, Amazon said it would close some of its Fresh and Go stores. Even Amazon's own brand, also can't avoid to reduce cost efficiency to contribute to the fate, in August, there is news that Amazon is planning to remove its platform to provide most of the private brand.
in addition, it is worth noting that Amazon's adjustment is only for non-member users. Member users also enjoy the same preferential benefits as before, such as free two-day delivery service and access to streaming media services. Therefore, to put it another way, Amazon may want to raise the threshold of free shipping to encourage more users to invest in Prime membership services.
have to say, Amazon courage. If consumers are willing to pay for membership services on a trade-off, then Amazon has made a sure-to-lose deal. After all, Prime membership services are one of its three pillar industries. In the second quarter of this year's financial statements, it was shown that subscription services including Prime members generated about $9.9 billion in revenue.
But if consumers refuse to pay for Amazon's food, but choose to flow to other e-commerce platforms, such as Wal-Mart, Target, etc., then Amazon can draw a basket of water.
in general, in the era of consumer degradation, Amazon's decision to raise the non-member free mail threshold is likely to cause consumer dissatisfaction, as to whether it can promote the process of cost reduction and efficiency, it depends on whether Amazon is well prepared to fight the user retention war. For all sellers, they should also be prepared to "be raised in price" and formulate the operation strategy after the cost rise in advance, so as not to be caught off guard.
Source: Telegraph