Amazon Is Raising Free-Shipping Minimums

Amazon has been secretly raising the amount of money that customers must spend without a Prime subscription to get free shipping.

The minimum number of free deliveries for Amazon customers who don’t have Prime memberships is now $35, compared to the $25 previously. Importantly, this change doesn’t impact Prime members who already pay $14.99 per month, or $139 a year, for free shipping and other perks.

The success of Amazon Prime

Amazon has been secretly raising the amount of money that customers must spend without a Prime subscription to get free shipping.

The minimum of free deliveries for Amazon customers who don’t have Prime memberships is now $35, compared to the $25 previously. Importantly, this change doesn’t impact Prime members who already pay $14.99 per month, or $139 a year, for free shipping and other perks.

The Secret of Amazon Prime

How was Amazon able to "secretly" raise such a standard fee and go completely unnoticed by most people? This question leads to the marketing strategy of Amazon's premier subscription service, Amazon Prime, providing perks through a multitude of platforms, and is almost a necessity for every household or individual.

The Beginning of Amazon Prime

Amazon Prime, initially introduced in 2005,  faced challenges when launched due to its high subscription costs and the fact that people are not as aware of online shopping. It also had very limited features, offering free 2-day shipping for $79 a year, which wasn't a good deal for most people back then except for people who used Amazon frequently. However, it quickly evolved over the years with e-commerce getting more popular each year and new additions like Prime Video, and the membership extended from only a small percentage of people who buy frequently to a lot more others who buy occasionally but also want all the other features provided by Prime.

COVID's Impact

Despite initial challenges, Amazon Prime has played a crucial role in Amazon's expansion. Amazon'sAmazon subscriptions has seen an ever bigger growth during the COVID era from 019-2021. With people quarantining and leaving their house less in general, most of the internet and tech company has seen tremendous growth, especially for Amazon which gainly a lot of popularity and has become the primary way of shopping for most household.

Annual Revenue

Amazon now has an overwhelming number of 200 million subscribers globally, generating over $30 billion in revenue every year just from the Amazon Prime subscription fee. Some people subscribe to watch TV shows on the streaming platform Prime Video, some subscribe to save costs for online shopping, and some subscribe to Prime Gaming perks and a free subscription on one of the largest livestream websites Twitch. It is very easy to justify yourself into subscribing to Amazon Prime for the amount of value it brings to the table.

Prime marketing strategy

Products Variety

As previously mentioned, Amazon, as the largest internet retailer in the world by revenue, can offer all the products that you can think of. Prime's success isn't just in sales but also in member purchases, with Prime members spending an average of $1,400 per year on Amazon, compared to $600 for non-members in 2021. This makes Amazon easily the largest online store in the US.

Digital Marketing

Aside from the traditional advertisement method, like making a 30-second promotion video and putting it on all the TV channels and websites, Amazon focused a lot on the new form of digital marketing mainly on social media. Amazon Prime is highly active on social platforms like Facebook and Twitter (now X) since they put a lot of effort into customer support in responding to possible complaints under the posts, as well as giveaways like clearing someone's wishlist that sparks engagement.

Affiliate Marketing

Affiliate marketing is a program that allows individuals like website owners to earn commissions for each person they promote to become an Amazon Prime member. When a customer clicks on their unique affiliate link and pays the subscription fee, the affiliate gets a cut on that sale. This program is a highly efficient way of growing Prime organically without having to do tons of marketing research and effort.

Collaborations & Partnerships

Amazon Prime makes various collaborations and partnerships that benefit both parties Amazon Prime members will receive some benefits from all the brands and services that Amazon partnered with, and vice versa. These promotions vary from time to time to draw consumers' interest in products that they normally would not consider.

Closing words

Amazon has always believed and committed fully to Amazon Prime. Such a consistent membership mode is crucial to their business model, building the customers' behavior overtime which is invaluable. Amazon's approach to its promotion is something worth noting. It is a great showcase of digital marketing and utilizing the power of the internet and social media for their best interests.