Amazon Prime is one of Amazon’s biggest cash cows, and the free shipping the service offers is one of Prime’s biggest draws, so doesn’t it seem a little counter-intuitive for the company to start offering free shipping to non-Prime users? Well, that’s what it looks like on the surface, but Amazon’s new free shipping program is limited to just a few thousand products, with the requirement being that the product weigh less than eight ounces. This is to attract more budget-conscious shoppers.
Amazon will now ship thousands of poplar products to customers free of charge, regardless of whether or not they are a Prime member, without requiring a minimum order. The company said it is using the program, dubbed Fulfillment by Amazon Small and Light, to target cost-conscious shoppers. The offer will apply to select items that weight eight ounces or less that typically cost under $10. Items that qualify for free shipping include things like makeup, mobile phone accessories and earplugs. Amazon’s new hub in Florence, Kentucky, will house all of the participating products which will arrive on customers’ doorsteps within four to eight business days. Sucharita Mulpuru, an analyst at Forrester Research Inc, said Amazon’s thinking is that maybe they can break even on these transactions which fits into CEO Jeff Bezos’ playbook. Despite just announcing it, Amazon has been running the new program on a trial basis for the past 13 weeks according to Bloomberg. The company went forward with it after realizing that items sold with free shipping and without a minimum order sold more quickly than before.
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