Target free shipping deal undercuts Amazon, Best Buy and Walmart
It takes a minimum order of $35 for shoppers on Amazon.com (non-Prime members) and Best Buy to get free ground shipping. Walmart.com shoppers need to spend $50 on eligible orders to qualify for free shipping. Target.com, as of yesterday, is lowering its minimum order to $25, no exclusions, for its online customers (AKA "guests" in Target-speak) to get their orders with no shipping fee added.
"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, in a statement.
Target is making the move after what Mr. Goldberger described as the "enthusiastic response" to the company’s free shipping offer over the holiday season. Between late October and Dec. 20, customers received free shipping on all Target.com orders regardless of size.
"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."
The new, lower minimum program is just one of the ways Target is looking to use digital channels to connect with consumers. The company has been pushing its order online and free pick-up in-store option. The company claims that more than 80 percent of click and collect orders are ready within one hour.
Target has also been expanding the use of stores as mini fulfillment centers and plans to open two new online distribution facilities in Memphis, TN and York, PA.
CEO Brian Cornell is looking to accelerate the growth of Target’s sales through digital channels. According to a Star Tribune report, online currently accounts for between two and three percent of the retailer’s total sales, compared to its Minnesota neighbor, Best Buy, which generates about eight percent of its total sales online.
- Shipping and returns – Target.com
- Target Lowers Free Shipping Minimum to $25 for Online Orders – Target Corp.
- Introducing free shipping on all orders of $25+ – A Bullseye View
- Target lowers free shipping minimum to $25 – Star Tribune (tiered sub.)
- Target raises ante in e-commerce fight with Amazon, Walmart – Fortune
- Will totally free shipping make a difference for Target’s holiday results? – RetailWire
Is Target on the right path to substantially increase the percent of its total sales that come through digital channels? Will its $25 minimum for free ground shipping give Target a boost in the competition for consumers’ e-commerce dollars?