I am a frequent Amazon shopper and always loved the free shipping on orders over $25. I was a little shocked earlier this week when I went to me place an order that was around $26 dollars and discovered I still needed $9 more. I had just placed an order on October 16th and received the free shipping with the lower minimum order. The change took place on Monday October 21st, 2013 and was announced on October 22nd, 2013. I guess I missed that memo. The reasoning behind the change was to aid with the cost of the impending holiday season. I am not sure how I feel about this.

As a customer, this $10 difference seems steep. I liked that I didn’t have to order a lot and I could find those cheap filler items like $5 DVDs or silly ice-cube trays to make to get to $25. Of course those items will still be available to me but the low price of $25 was the incentive to use Amazon over other companies like Wal-Mart or Target that have $50 minimums for free shipping. I could always go to the physical store, but Amazon has cool products that those box and department store do not sell. I am not sure if this will deter me from using Amazon all together but I will think more about my purchases when I make them. For my sister’s birthday, it was so easy to get her two DVDs with free shipping. Without having “Video” stores, Target or Wal-Mart are the only options and when they do not have what you need, you are forced to use a service like Amazon. Now I will have to add more and at that point it might be worth it to try other sources like Best Buy, who still have the $25 minimum.

As a vendor, this increase makes sense. It has been over a decade since Amazon has changed this price and while the free shipping was an incentive for a lot of their customers, the factors that determine postage are high such as travel. Amazon has detailed shipping rates for their shipments and when you compare the numbers of the free shipping they could actually be losing money. According to a LA Times article, this announcement came a few days before Amazon’s quarter 3 earnings were to be released. This also came after Amazon had a lack luster second quarter that reported a net loss. I also heard a rumor (on NPR, no source sorry!) that Amazon was looking to hire a larger amount of Holiday workers than they have in the past. Taking in all these factors, a $10 increase, while perhaps desperate, could be what Amazon needs to boost its sales.

This brings up so many questions. Are the motives fiscal? Are the holiday operating costs the cause? Where did Amazon go wrong? And my personal struggle, is this $10 increase enough to deter Amazon users?