Amazon increases minimum order amount for free shipping to $35 in first price hike for 10 years
- Amazon has increased the minimum order for fee shipping to $35
- For 10 years, the minimum was $25
- The retailer hasn't explained the move, but commentators say the company may be trying to encourage consumers to buy an Amazon Prime subscription
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Amazon has increased its minimum order for free shipping to $35 - up by $10.
It's the first price hike in 10 years, with the online retailer previously offering free five-day shipping to non-Prime members with a minimum order of $25.
While the company has not commented, commentators say today's news could be a bid to encourage consumers to buy an Amazon Prime subscription.
Bump: Amazon has increased the minimum order for fee shipping to $35 - up by $10
CNET reported consumers who frequently buy from Amazon, but spend less than $35 per order, may now sign up to Prime.
Prime is a $79-per-year service that offers unlimited free two-day shipping on products and the streaming of more than 40,000 movies and TV shows.
Amazon even promoted the service in today's notice announcing the minimum order price rise.
'The service is so popular that more
than a year ago we began shipping more items with Prime than with free
shipping,' Amazon wrote.
Busy: Amazon's Swansea, Wales, fulfillment center is one of the company's largest warehouses
Since it was founded in 1996 by CEO Jeff Bezos, Amazon has become a global retail power and dominates the e-book market.
However New York Times reported that the constantly diversifying company lost money last year, with analysts anticipating another loss when Amazon releases its third-quarter results on Thursday.
Yet the stock is at a record high.
Amazon is expected post $75 billion in revenue this year.
Analysts have speculated that the retailer is trying to boost its profits by raising prices on certain services.
For example, customers who joined Prime for $79 a year used to be able to get really urgent things delivered the next day for an additional $3.99 an item.
Now, New York Times reported, the company has begun charging variable amounts according to an item's size and weight, with a minimum of $2.99.
Amazon announced the $10 minimum order hike on its website today
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