We know that Amazon is the leader when it comes to e-commerce marketplaces all around the world and despite the funding and trials from a lot of its competitors, we see that none of them have been able to match or even come close to what it is today and there is a reason for that as well. However, we know that there are a few things that Amazon does which are monopolistic in nature such as its Prime program which allows customers to enjoy free shipping on orders and even offers faster shipping at no additional cost as well.
But the thing is that if you are not subscribed to Prime from Amazon then you have to order products worth a minimum amount set by the company in order to enjoy free shipping whereas faster shipping is always charged for non-Prime members. Now, we see that Amazon has hiked the minimum order value for its non-Prime customers which was $25 earlier to $35 from now on. Basically, it means that you would have to order items worth $25 or more in order to get free shipping but now you will have to order items worth $35 or more in order to get the same benefits. Now, we know that this will increase the average order value for the company because people like to get free shipping but it can be a double-edged sword as well.
Amazon’s new CEO Andy Jassy is doing things that are related to cutting costs and increasing the company’s bottom line but it also goes against what Amazon has been doing for so long now which is to offer value to its customers. Having said that, we know that the company also has to bear costs on returns as well as orders that can’t be delivered which is why they might have had to take this decision. One reason why Amazon became what it is today is because of the no-questions-asked return policy which has also been exploited by many all around the world. This is the reason why the company has also backtracked somewhat on its return policy too.
