In a strategic move to optimize cost-cutting measures, Amazon is experimenting with a revised minimum purchase requirement of $35 for customers who are not subscribed to the Amazon Prime loyalty program. This change represents a shift from the previous threshold of $25 and could potentially drive more individuals towards Prime membership. Currently, Prime membership is priced at $139 annually, providing subscribers with perks such as complimentary two-day shipping, access to streaming services, and other exclusive benefits.

Reports indicate that Amazon has already initiated this new minimum spending requirement in select markets. Notices on the company’s website have highlighted the adjustment as part of Amazon’s ongoing efforts to enhance operational efficiencies.

While non-Prime customers will be impacted by this shift, existing Prime members will not be affected. They will continue to enjoy their subscription benefits without any modifications.

This strategic alteration aims to incentivize more customers to embrace the Prime membership program, thereby boosting Amazon’s revenue. As of 2021, the company boasted over 200 million Prime subscribers worldwide, underpinning the success of its subscription-based services. These services, including Prime memberships, contributed to generating approximately $9.9 billion in revenue, as revealed in Amazon’s recent quarterly earnings report.

Amazon has demonstrated flexibility in adjusting the free shipping threshold for non-Prime members in the past. In 2016, the minimum requirement was elevated from $35 to $49, only to revert to the earlier threshold a year later. Subsequently, in a bid to compete with Walmart, Amazon lowered the minimum purchase back to $25.

This latest move comes in the wake of Amazon’s ongoing rivalry with Walmart, one of its key competitors. Walmart, too, enforces a $35 minimum purchase for shoppers who are not enrolled in its loyalty program, Walmart+.

As Amazon tests this new minimum purchase requirement, industry observers anticipate shifts in customer behavior and market dynamics, given the e-commerce giant’s significant influence on online shopping trends.

(YWN World Headquarters – NYC)