In a continued battle for e-commerce market share, Amazon.com is cutting the threshold for free shipping from $25 from $35 in the U.S.
Currently, Amazon offers free two-day shipping under its $99 Prime membership program. According to Reuters, the new offer is meant to encourage increased traffic on the e-commerce platform, eventually converting these shoppers into new Prime members.
Conversely, Walmart has been building its e-commerce business, hoping to chase down Amazon. Last year, the retailer started its own membership program called ShippingPass, which offered free two-day shipping at a rate of $49 a year. The program was replaced in January, with Walmart now offering free two-day shipping on orders of $35 or more.
This is the latest development in a fierce battle for market share between the two mega retailers. For independent retailers, this increased competition will require a response. Amping up e-commerce capabilities or increasing in-store services are a surefire way to attract new customers and convert them into regulars.
