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Amazon Increases Its Free Shipping Minimum To $35 For Non-Prime Members In Some Regions - TechCrunch

Amazon is increasing its free shipping minimum to $35 for customers who don't have a Prime membership in some regions, the company confirmed to TechCrunch on Monday. Up until now, the free shipping minimum was $25. Amazon says it's testing the new free shipping threshold randomly by ZIP code-grouped regions and that everyone in the same region will see the same free shipping threshold. The news was first reported by CNBC.

"We continually evaluate our offerings and make adjustments based on those assessments," an Amazon spokesperson told TechCrunch in an email. "We're currently testing a $35 minimum for non-Prime customers to qualify for free shipping. Prime members continue to enjoy free delivery on over 300 million items, with tens of millions of items available for free Same or One-Day Delivery."

The company is looking to push more customers toward it Prime offering with this new change. The change does not impact Prime members, who pay $139 annually or $15 per month for free shipping and other membership perks.

It's worth noting that this isn't the first time that Amazon has changed its free shipping threshold, as it increased the minimum to $49 from $35 back in 2016, and then brought it back to $35 in 2017. The company later dropped the price point to $25 to undercut Walmart, which has a $35 free shipping minimum for customers who aren't subscribed to Walmart+. The new change brings Amazon in-line with Walmart's offering.

By increasing the free shipping threshold, it seems that the company is attempting to cut costs, which is something Amazon has been looking to do across its business.

Amazon cut 27,000 jobs this year and froze corporate hiring. The company also started charging delivery fees for Fresh grocery orders that are less than $150, removing a perk that gave Prime members free delivery on orders over $35. In addition, Amazon ended AmazonSmile, which was a donation program that redirects 0.5% of the cost of all eligible products toward charities.

Aisha is a consumer news reporter at TechCrunch. Prior to joining the publication in 2021, she was a telecom reporter at MobileSyrup. Aisha holds an honours bachelor's degree from University of Toronto and a master's degree in journalism from Western University.

Amazon Tests Varying Free Shipping Thresholds Based On Zip Codes, Annoying Some Customers

SEATTLE — How much do you need to order from Amazon, if you're not a Prime member, to get free shipping? It now depends on where you live. The minimum purchase used to be $25 everywhere in the U.S.; now, it's $25 in some zip codes and $35 in others.

Amazon told Checkbook that it's randomly testing the free shipping threshold in different regions, grouped by zip code.

"We continually evaluate our offerings and make adjustments based on those assessments," said Kristina Pressentin, an Amazon spokesperson. "We're currently testing a $35 minimum for non-Prime customers to qualify for free shipping. Prime members continue to enjoy free delivery on over 300 million items, with tens of millions of items available for free same or one-day delivery."

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David Bookbinder, an Amazon customer in Massachusetts, was surprised to see his minimum purchase requirement jump from $25 to $35 recently. Even though he hadn't seen any notice about a policy change, he assumed it applied to all non-Prime customers.

After Bookbinder contacted ConsumerWorld.Org, he discovered that this wasn't an across-the-board policy change.

"It makes me a little annoyed," Bookbinder told Checkbook. "They seem to do this a lot where select customers are treated differently. And how do they pick and choose who gets what and who pays what? I think it's unfair."

It didn't take long for Edgar Dworsky, Consumer World's founder and publisher, to discover the two-tiered shipping policy.

"Amazon customers even in the same geographic area could be subject to different shipping charges if their zip codes are different," Dworsky said. "If you live in Manhattan, you get free shipping with a $25 purchase, but reside in Brooklyn and you have to meet a $35 minimum. That's crazy!"

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Dworsky found other examples of nearby cities with different minimum purchase requirements: The minimum purchase is $25 for shoppers in Seattle, but $35 a few miles away in Bellevue. In Bethesda and Chevy Chase, Md., the minimum is still $25, but now it's $35 for the Dupont Circle neighborhood in D.C. Metro Boston towns are $25 while adjacent North Shore communities like Salem or Lynn are $35. Beverly Hills is $25 while Westwood right next door is $35.

Amazon has not formally announced its new market test. The shopper won't discover the new minimum threshold (if it applies to their zip code) until they check the fine print on the side of the page when they click on a product.

"It is unfortunate while consumers are still struggling with inflation and higher product prices that Amazon has chosen to pile on and charge for shipping that previously was free," Dworsky said.

TIP: Because the minimum varies by zip code, you may score the lower price by having a $25 order shipped to a different address, maybe where you work or where you live, or even a friend or relative's house. Just change the zip code in the delivery location box at the top left side of the home page.

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Consumers' Checkbook magazine and Checkbook.Org is a nonprofit organization with a mission to help consumers get good service and low prices. It does this by providing unbiased ratings, advice, and price information. Checkbook is supported by consumers and takes no money from the service providers it evaluates. You can reach Herb at his website ConsumerMan.Com.

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