It’s confirmed that Amazon are doubling the minimum order value to qualify for free Super Saver Delivery from £10 to £20 in the UK.
Many Amazon customers who aren’t in a hurry to receive their items have enjoyed Super Saver Delivery for free. Up until July 2013 there was no order restrictions but then Amazon introduced a minimum order value of £10.00. We heard rumours this afternoon that this was to be doubled to £20 and Amazon have just started rolling the new minimum order limit on their site.
Currently the only indication of the price hike is on the Shopping Basket page where there’s a message for a £13.40 item that you’ll need to add another £6.60 to qualify for free delivery. If you complete checkout you can
still qualify for free delivery for orders between £10 and £20, but we expect that to end some time this evening no longer select Super Saver delivery for orders under £20.
We also expect Amazon to update the Super Saver Help Page to reflect the new £10 minimum order value.
Of course you can still order items with a total value of under £20, you just won’t be able to receive free delivery on them. This means for FBA sellers your customers who previously purchased £10-£20 items with free carriage will no longer be able to do so. They’ll either have to pay for delivery, sign up for Amazon Prime, or add additional items to their basket in order to receive free delivery.
We’ll be watching the help page for Amazon Add-On Items which up until now has also had a minimum total order value of at least £10 of eligible products. Whilst we’ve heard nothing to suggest that this limit may increase, it’s possible that Amazon could also hike this to a minimum order value of £20 and this would seriously impact sellers of low value items.
Why are Amazon hiking Super Saver minimum order value to £20?
Amazon traditionally haven’t worried about profits, preferring instead to concentrate on growth. However sooner or later they have to become a profitable company and it’s likely that it’s simply unsustainable to offer free delivery on low value items (or more precisely on low value order values).
Amazon have been a leader in online retailing and pretty much the entire industry have followed their headlong rush to offer free delivery. Reining back their Super Saver free delivery program could be one of the first indicators that free delivery across the board will become a thing of the past, at least for low value orders where it forms a large part of a retailers total order cost.
How do you think this will affect your business on Amazon? Do you sell low value items shipped with Amazon FBA and will you consider pulling sub £20 items and fulfilling them yourself instead of using FBA?