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Industry NewsAmazon cuts Prime rate threshold to battle Walmart

Amazon cuts Prime rate threshold to battle Walmart

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Thursday, May 11, 2017

Amazon.com is cutting the threshold for free shipping in the U.S. to $25 from $35, as its battle for e-commerce supremacy against Wal-Mart Stores Inc. heats up, according to a Reuters report.

Amazon already offers free two-day shipping under its $99 Prime membership program but the new offer is aimed at encouraging more customers to shop on its platform and to eventually convert them to becoming Prime members, the report says.

Walmart has been building its e-commerce business as it looks to narrow the massive online retailing gap with Amazon. The retailer started its own membership program called ShippingPass last year, which offered free two-day shipping for $49 a year. However, Walmart ended the program in January, replacing it with free two-day shipping on orders of $35 or more.

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