Amazon Fires Back at Walmart as Free Shipping Wars Continue
Hidden behind the excitement of the launch of the Echo Show on Tuesday was the fact that Amazon quietly updated its free shipping policy. The company lowered the threshold for free shipping back down to $25—where it had been before Amazon began raising the rate in 2013.
This is the second time this year that Amazon has lowered the rate. Back in February, Jeff Bezos' company was "forced" to answer the call when Walmart decided to undercut Amazon's free shipping threshold by offering free two-day shipping on orders of $35 or more. Amazon, at the time, offered free shipping to non-Prime members on orders of $49 or more. Amazon then matched the $35 order limit, but didn't include two-day shipping.
What's clear about this latest move is that Amazon might actually believe that it's in a spot where it has to compete with Walmart. Rather than simply lowering the free shipping minimum to give off the impression that they're competing, Amazon has now taken the step to undercut Walmart's offer—a move that suggests Amazon might be concerned about Walmart stealing some business back.