Target saw record online sales during Thanksgiving and Cyber Monday, and it looks like that strong performance made the company think about how to increase its online presence even more.
Dropping free shipping thresholds to $25, $10 below online retail king Amazon, is a pretty good start.
Target has just cut its minimum order price to qualify for free shipping in half. Orders that qualify for free shipping will arrive in 3-5 business days, and Target says that "most items" qualify (bigger items may require a handling fee). Expediting the shipping to one or two days will cost extra. And of course, there's always the free in-store pickup option.
“Lowering the free shipping threshold from $50 to $25 is one more way Target is putting guests first and making it easier for them to shop Target when and where they want,” said Jason Goldberger, president of Target.com and Mobile. “We saw an enthusiastic response to our free shipping offer over the holidays. Now, whether guests are stocking up or doing fill-in shopping, we’ve enhanced our year-round shipping offer to be one of the best in all of retail.”
Amazon increased its free shipping threshold from $25 to $35 in October of 2013, the first time the company had done so in a decade. Shortly after that, Amazon increased the cost of an Amazon Prime subscription, citing shipping costs as one reason why.
By comparison, Walmart's free shipping order price point is $50, and even then it's 6-8 day shipping.