Emphasis squarely on Amazon PRIME membership
Today, Amazon announced it is increasing the minimum purchase needed to get free shipping to $49, making it level with Walmart ($50 minimum, Target is at $25 and Jet.com is at $35). This expected move is speculated as a marketing tactic to increase PRIME memberships, a $99 annual fee that assures free shipping on a large portion of Amazon site offers. It could also be in conjunction with rising shipping costs which jumped some 37% in last year’s Q4.
According to a more detailed report from Greg Besinger at WSJ.D, “Prime fee alone could account for between $4 billion and nearly $6 billion in revenue annually, according to estimates in the range of 40 million to 60 million members. And being loyal, Prime members are important too because Amazon has to spend less to market to and retain them.”
All Amazon shoppers can also save significant savings by shopping through FatWallet and earning cash back, including 7% on Amazon services. For Prime members that utilize free shipping and other perks, this can add up to significant savings over the course of a year.
This week’s Amazon cash back listing includes: