Dive Summary:

• Amazon has announced that consumers will have to spend more to receive free shipping on merchandise.
• The online retail giant increased the minimum purchase price to receive the service by 40%, to a minimum of $35 per order.
• The decision from Amazon could be designed to encourage customers to join Amazon Prime.

Dive Insight:

“If consumers who want free shipping have to spend more than $35 to qualify, it may become more attractive to pay the $79 annual Prime subscription fee,” says Colin Sebastian, analyst for investment firm Robert W. Baird & Co.  Amazon denies claims that the decision is designed to encourage shoppers to join Amazon’s yearly subscription service, Amazon Prime.