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Retailers’ Christmas Gift: Free Delivery, No Minimum Spend

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Retailers’ Christmas Gift: Free Delivery, No Minimum Spend

It might not be a surprise to learn that online shopping is going to be bigger and better than ever this holiday season with e-commerce sales expected to rise nearly 15% compared to last year. Black Friday and Cyber Monday, just around the corner, of course will play a big part in that.

Retailers who have been desperately working to bring their omni-channel experience up to scratch are finally going to reap their rewards and those with a strong e-commerce offer as well as physical store space are predicted to come off best.

It’s perhaps this, and the fact that other online retailers are upping their delivery game, that has got Amazon thinking about what they can do to make sure they keep their hold over the online pie.

Since the first time it offered free shipping on orders over $25 dollars in 2002, Amazon will start offering free online delivery with no minimum spend to all customers as of this Monday. It will only last until as long as the Christmas period, but it will be a saving across hundreds of millions of items.

Amazon is way ahead of its rivals in terms of online sales, but Walmart and Target are also looking to make logistics partnerships that will provide customers with free 2 day delivery and no minimum spend over the Christmas period.

Whilst Amazon might not think they have so much to worry about, the company’s revenue projection for the remainder of the year fell below some Wall Street analysts’ estimates.

Nearly one dollar of every six spent on retail purchases will take place online this year.

It will be interesting to see how the strategy plays out. Free delivery is very important to older shoppers who want to avoid crowds and find items more easily, while younger shoppers are more motivated by the ability to compare items and read reviews.

More Reading

https://www.retaildive.com/news/holiday-e-commerce-expected-to-reach-124b/541269/

https://www.forbes.com/sites/andriacheng/2018/11/05/amazon-free-shipping-holiday-minimum-order-walmart-target/#3847f5a255e1

https://adobeenterprise.lookbookhq.com/adi2018

https://edition.cnn.com/2018/11/04/business/amazon-holiday-shopping-prime/index.html

 

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