Since Seattle-based Amazon's Super Saver Shipping was first introduced on January 23,2002 millions of people have enjoyed being able to order a minimum of $25 and have all shipping charges waved. It had always been a great deal for the student on a tight budget in need of supplies, the avid book reader and anyone else that liked being able to buy a few items without any extra expense. On Wednesday that all changed when Amazon raised the amount required to $35 to qualify for free shipping.
“I would often order two CDs to get the free shipping, but now that isn’t going to happen,” said Ariel Grostern of Washington.
A raise in the minimum of $10 may not sound like that much but to Ms. Grostern and other customers that only buy a few items at one time it make the difference between making the choice of making the purchase they intended, buying less to compensate, putting off the purchase or going somewhere else. One possible solution that many customers might choose is to pay the $79 per year for Amazon's Prime Network that includes free shipping among other benefits.
“Certainly when you look at that in terms of lifetime value, we have a (Prime) customer base that’s certainly staying with us longer, they’re doing more cross-shopping and they’re getting the benefits of Prime that we’re offering, that we continue to add to,” said Amazon CFO Tom Szkutak.
When Amazon first announced that they would being raising the minimum by $10 there was no reason given for the . In the two days since then Amazon's CFO Tom Szkutak did cite the rise in transportation cost as the reason that forced the Seattle-based company to make the move. While that is a good reason for the company to make the move their timing seems a little odd since most colleges have only been in session for a few weeks meaning students are still figure out what they need to purchase and the holiday season is just kicking off that often means budgets are being stretched to their limits.
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