If you asked your Amazon customers to name their favourite things about the eCommerce site, what do you think they would be? In addition to the vast product range and cheap prices, many people would also mention Amazon’s famous Super Saver Delivery option, which provides free second-class delivery on all orders over £10. However, as of last week, that all changed.
In a press release on their UK website, the eCommerce giant announced that it would be doubling the minimum spend requirement for its Super Saver Delivery option, requiring all customers to spend over £20 to qualify for free delivery on everything except books, for which the threshold remains at £10. This move has caused quite a stir amongst not only Amazon’s large UK customer base, but also many UK based Amazon sellers, and eCommerce fulfilment companies across the country. So what impact could this decision have on the eCommerce industry?
Let’s start with Amazon customers. For many, it means either paying for delivery or spending more on the site in one go, both of which are favourable options for Amazon. Additionally, the move may drive more customers to Amazon Prime, which offers free one-day delivery on all items, plus other benefits, for a fee of £79 per year.
Again, this outcome would also be good news for Amazon, as Prime customers spend on average double that of regular customers on the site. For UK based Amazon sellers, it could mean one of two things: if they are signed up to Amazon fulfilment, it could mean either that they lose customers and thus outsource their eCommerce fulfilment somewhere else, or that they experience more sales as customers attempt to meet the £20 minimum spend should they want free delivery. Additionally, many people working in the eCommerce fulfilment or shipping industries have suggested that this announcement could spell the beginning of the end for free delivery.
As it has only just been announced, we will need to wait and see how much of an effect this has on Amazon’s business model, and if it causes any other eCommerce sites to adopt a similar policy. You can read the full statement from Amazon on the changes to Super Saver Delivery here.