Amazon confirms testing increasing the free shipping minimum to $35 from $25 for non-Prime members; Walmart also has a $35 minimum for non-Walmart+ members
- Amazon is testing a $35 free shipping minimum for people who aren't members of the company's Prime loyalty program.
Context & Ripple Effects
Amazon had already been working to offset delivery costs through changes to Prime pricing and order thresholds, as outlined in its earlier shipping-cost measures. The test extends that cost discipline to customers outside the membership program.
The $35 benchmark is not new in US retail: Walmart adopted free two-day shipping on $35-plus orders after ending ShippingPass in its shift away from a separate shipping subscription. Amazon's test brings its nonmember threshold in line with that benchmark.
First-order effects
- Non-Prime customers included in the test must reach $35 rather than $25 to receive free shipping, creating an immediate incentive to add items or pay for delivery.
- Amazon narrows the free-shipping advantage available without Prime while matching Walmart's stated non-Walmart+ order threshold.
Second-order effects
- A shared $35 threshold makes free-shipping qualification less of a differentiator between Amazon and Walmart for nonmembers, shifting competition toward assortment, delivery experience, and paid membership benefits.
- Retailers using lower thresholds may face greater pressure to justify the shipping cost, while merchants on Amazon may see some tested customers consolidate purchases into larger carts.
Third-order effects
- If such tests persist, free shipping is likely to become more explicitly conditional on basket size or membership rather than a broad acquisition tool.
- The pattern points to loyalty programs serving a clearer economic role: separating frequent customers who receive delivery benefits from nonmembers asked to contribute more per order.
The trend: Large retailers are recalibrating free-shipping promises around delivery economics, using order thresholds and memberships to protect margins.