Amazon raises minimum order value for free shipping to $35 for non-Prime members.

You place an order of $30 at Amazon and discover that you no longer qualify for free shipping. Annoying, right? Well, Amazon is indeed experimenting with a new minimum order value for free shipping for selected non-Prime members. The company has raised the minimum threshold from $25 to $35.

This change has occurred in randomly selected postal code regions and is one of many adjustments Amazon is considering in light of rising operational and shipping costs. A Prime membership, which still offers free shipping, costs $14.99 per month or $139 per year.

But why is this important for businesses and organizations? This new threshold could influence consumer purchasing behavior and alter Amazon's competitive position relative to other e-commerce platforms. Companies utilizing the Amazon platform may need to adjust their pricing strategy or promotional approach to remain attractive to customers.

Earlier this year, Amazon migrated to a regional fulfillment model to reduce costs and accelerate delivery speeds. Amazon CEO Andy Jassy indicated in a Q2 earnings call that the company is continuously looking for ways to lower costs for its fulfillment network. Additionally, Amazon had already raised the minimum order value for free delivery via Amazon Fresh back in January.

So what are the solutions? For consumers, it may become appealing to take out a Prime membership. For businesses, it likely means a reassessment of their shipping cost strategy, especially if they also sell their products on Amazon.