Target Reduces Free Shipping Requirement To $25, Now Cheaper Than Walmart & Amazon

Consumers no longer have to drop $50 to qualify for free shipping on Target.com. In an attempt to stay competitive with other online retailers, the big box store reduced the minimum requirements for free shipping to $25.

TechCrunch reports that Target’s reduction now makes the retailer’s free shipping requirement $10 less than it is on Amazon and $25 less than Walmart.

Target says that the changes were made after customers responded well to the retailer’s free shipping special during the 2014 holiday season. That special resulted in an estimated 40% sales increase during the fourth quarter of the year.

The price reduction is just the latest shipping change for Target.

Last year, the company announced it would open two fulfillment centers in Tennessee and Pennsylvania in order to accommodate growing online sales.

According to Target, nearly two-thirds of orders placed online already quality for free shipping. The company also claims that 60% of items on Target’s website are less than $25.

TechCrunch reports that Target’s reduced free shipping minimum could spur competitors to also lower their costs.

Currently, Walmart requires orders to be $50 or more in order for customers to qualify for free six- to eight-day shipping.

Amazon, which offers free shipping on millions of products to Prime members, requires other customers to make orders of $35 or more in order to qualify for free shipping.

The e-tailer did make changes to its shipping requirements earlier this year that allows Amazon Seller-fulfilled items with free shipping to be available for free Super Saver shipping. The move made nearly 3 million additional items eligible for free shipping.

Target.com Undercuts Amazon And Walmart With New Free Shipping Minimums [TechCrunch]