Being a part of the ever competitive online market and needing to constantly up its game, Amazon Inc has now introduced free shipping for even more of the products found on their website.
Though the announcement made Tuesday (June 2, 2015) specified that the products have to be small in size for the shipping fee to disappear, the list includes a large variety of popular products such as lipsticks, eyeliners, smartphone accessories, or even earplugs.
To be exact, the packages have to weigh eight (8) ounces or less (230 grams or less), however there is no required minimum order, and even more surprising, and pleasing, the policy applies to all customers, not just those enrolled in Amazon Prime.
Delivery of such packages will take between four (4) and eight (8) business days, and shipping will be made from a hub in Florence, Kentucky, specifically stocked with products matching the requirements of free shipping. The company dubbed the program “Fulfillment by Amazon Small and Light”.
Neil Ackerman, a senior manager at Amazon, gave a statement saying that both customers and seller are very happy that people can make a purchase as cheap as $5. Customers buy more products at low, convenient prices, and sellers move more of their products and make more of a profit.
For those who don’t know, most of the products on Amazon come from third party sellers who give Amazon a small cut of each sale in return for handling, storage, packaging, delivery and customer service.
Some experts theorized that Amazon Inc was indirectly forced into implementing the program as cost conscious consumers who make decisions not only based on the price of the products that they wish to purchase, but also on the shipping fee, have recently been courted by Amazon Inc’s rival, EBay Inc.
It’s a good strategy as online shoppers who are looking to buy small, and often inexpensive items, easily get discouraged from going through with the order due to the high shipping fees that they’d have to pay. These shipping fees are sometimes higher than the prices of the products themselves, which in turn makes it seem like the purchase is not worth making.
The new announcement comes right after Jeff Bezos, Amazon’s Chief Executive Officer, made same day deliveries available in big cities just last month, in the second half of May.
Sucharita Mulpuru, an analyst at Forrester Research Inc, gave a statement suggesting that “Maybe the thinking is they [Amazon Inc] can break even on these transactions and that’s all they really need to do. That fits the Bezos playbook”.
A trial period for Fulfillment by Amazon Small and Light started about thirteen (13) weeks ago, and the company made it official on Monday, June 1, 2015, after noticing that the products with free shipping sold a lot faster than they had in the past.
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