Amazon Launched New Shipping Service Without Minimum Order Requirement
Amazon has introduced free shipping on small items without a minimum order requirement.
Amazon.com Inc. has introduced a latest offer for its consumers in which the smaller item such as makeup, earplugs and mobile phone accessories shipping is free of cost. Moreover, customers will not be required to place an order of minimum amount to avail the offer. The new offer had a trial run around 2 weeks ago and the company found out that the items offered for free shipping are tends to sold more rapidly than before.
The latest offer can be avail by any Amazon customer not on the basis of Amazon Prime account. Normally, non-prime users of Amazon are required to place an order of more than $35 to qualify for free shipment in two days. the company is targeting to beat market share of eBay Inc. which is primarily made for shoppers looking for economical purchases. Amazon new offer is also made to deal with the competition from Target Corp. and Wal-Mart Stores.
By this latest offer customers looking to buy one cheap item at a time did not have to worry about the cost of shipping being more than product price. Items should b less than or equals to 230 grams to qualify for free shipping. items like these have normally $10 price range. The delivery days for these items under this new service will be 4 to 8 working days.
The company has established a shipping hub located in Florence Kentucky especially for this new program which is called "Fulfillment". Most of the products in this will be available for sale by 3rd party vendors. The company will charge a certain percentage for dealing with the third party inventory, customer service and inventory.
Amazon can use this step to grow its overall audience including Prime members for $99 a year. Amazon has making tremendous efforts under Chief Executive Officer, Jeff Bezos leadership in order to attract users for its Amazon Prime service. lately, the company has added various new features in this service like similar day delivery in big cities with music and video streaming.
Forrester Research Inc. analyst Sucharita Mulpuru told Reuters currently emphasizing on "just break-even" is ideal for the company. .Amazon stock closed at $436.59 after going green by 1.30 on Wednesday May 3, however it declined by 0.47% to $434.53 during pre-market trading session today as of 4:21 AM EDT.The company has 52-week low and high of $284.00 and $452.65, respectively.
