Target plans e-commerce sales boost with more free deliveries

Target is undercutting rivals Amazon and Walmart by dropping its minimum requirements for free shipping from $50 down to $25.

From today, the retailer’s free shipping minimum will be $10 less than Amazon’s regular minimum and half as much as Walmart’s.

While Amazon has recently increased the number of items eligible for completely free shipping, the online-only company has yet to reduce its $35 minimum for other items. Walmart also requires customers to spend more than $50 to be eligible for free shipping, but doesn’t charge for in-store delivery.

Target, on the other hand, found that customers responded well to a free shipping offer over the holiday period, which led to a 40 per cent increase in sales during Q4, and decided to slash its free shipping minimum.

Two-thirds of the company’s orders already qualify for free shipping, but since 60 per cent of items on Target’s website are under $25, the company can now target those customers teetering over ordering just a few items.

However, other retailers such as Zappos and Nordstrom have offered free shipping regardless of basket size for some time.

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