Amazon is changing its free shipping option for the holiday season

05 November, 2018, 23:07 | Author: Dave Hampton
  • Amazon will offer free shipping on holiday purchases

Prime account holders will receive free same-day delivery instead of two-day shipping on eligible items.

Amazon says it will offer free holiday shipping to all of its customers on hundreds of millions of items, a potentially costly competitive move created to keep pace with similar moves by the company's retail rivals.

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Amazon's ultra-fast delivery service, Prime Now, will also offer special Black Friday deals to more than 30% of the United Kingdom population, providing an ideal selection of gifts, gadgets, fashion and Christmas treats which can be delivered in scheduled one- and two-hour delivery windows or within 60 minutes in selected postcodes. This year, both Walmart and Target made a decision to beat Amazon on shipping, but Amazon just responded with its own shipping offer. Amazon spent more than $7 billion on shipping in the fourth quarter past year, before subtracting the shipping fees it collects from customers.

About $720 billion in sales are up for grabs for the Black Friday shopping weekend, according to the National Retail Federation.

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The credit ratings agency noted that in the fourth quarter of 2017 alone Amazon's shipping costs amounted to $7.4 billion.

Amazon didn't say when customers using the free standard shipping tier would have to place orders to guarantee delivery by Christmas. Hundreds of millions of items will therefore become eligible for free shipping. The spokeswoman said the company expects to announce that cutoff date later, after assessing customer demand and its logistics network. Prime remains the cornerstone of Amazon's business because shoppers buy more from the retailer once they pay $119 for the year-long membership.

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It intensifies the war for online customers this holiday, and comes after Target announced free two-day shipping for all customers for the holiday.

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