In order to ensure a top-notched service and offset the cost factor, Amazon.com, Inc. (NASDAQ:AMZN) has increased the minimum spend limit to avail free home delivery in UK. As per the reports, customers will have to spend at least £20 from now onwards to make sure that goods are delivered to their houses for free. Previously, customers had to buy products worth at least £10 for free home delivery. There are mixed reactions in the market after Amazon’s announcement.
What Next:
The new rates are applicable instantly, which means that all the customers who spend below the newly specified limit will be charged extra for home delivery of items. Even though, Amazon.com, Inc. (NASDAQ:AMZN) has enhanced the minimum spend limit, but those who have already subscribed its Prime streaming service for £80 per year need not worry. As per the reports, it will continue to offer free home delivery to all such customers.
The senior leadership team of Amazon calls it an optimal way to offset the increased inflation in the global market. The cost per order has elevated due to various reasons; therefore, Amazon doesn’t want its operations to get affected by this price hike. The retail giant announced a hike in its minimum wage system a few weeks ago. Even though, Amazon has its own explanation behind this price hike, but customers may not like this announcement.
Market experts anticipate that this price hike will affect those people who use Amazon occasionally to buy goods. Earlier they could easily get the purchased goods delivered to their homes freely, but from now onwards, they will need to double the minimum spending to avail the free home delivery. It’s too early to decide if Amazon will get a positive response after implementing this new price structure or not. The picture will be clear during the next few months.
