Amazon Raises Minimum Purchase for Free Shipping

[Late]

For years it was $25 to ship for free domestically. Now it appears to be $35.

Did this just happen today?

[Dan Gould]

Well obviously neither of us are shopping at Amazon very often but no, I'd say it happened sometime between late September, when I advised my brother of how he could make up for missing my birthday, and late October, when I did so again.

Definitely sucks and I am not sure exactly how it is going to effect my holiday purchases. I didn't mind a second CD or DVD to get to $25 but three items when I only want one or two is really pushing it. They think we're f-ing lab rats learning to push the lever three times to get a treat instead of twice.

[Jazzmoose]

I generally use Amazon for books, and I'm enough of a reading junkie that I've never been able to carve a book order down below $35 anyway.

[Jerry_L]

It was at least a couple of weeks ago that I first noticed. They obviously want to encourage purchase bundling and higher sales volume.

Edited November 25, 2013 by Jerry_L

[Stefan Wood]

It was in September. Plus, at least for Virginia residents, they tax your purchases.

[kh1958]

It was in September. Plus, at least for Virginia residents, they tax your purchases.

It's the same in Texas, sales tax is now collected on purchases from amazon.

[Late]

I shop through Amazon a fair amount, but almost exclusively through their marketplace. I guess the change had been there for some time, and I just didn't notice it. When I have ordered directly from Amazon, I must admit there's always been a strange pleasure at getting the total just pennies over $25. Kind of like: Take that, Amazon! (Cue image of Zoro.) Now with the $35 minimum, the incentive to purchase directly from Amazon is considerably diminished. And I still cringe somewhat at the $4 marketplace shipping fee for a compact disc, especially when said disc is, say, $2.99. (But, I do recognize, that U.S. residents are spoiled this way.)

Remember, back in the day of (the real) Tower, when free shipping came at $20? With a coupon (when those existed more readily), you could get out with a purchase of around $15, and have it shipped for free.

[sonnymax]

The policy change went into effect on October 22. Earlier in the year, Amazon had warned that it's shipping costs were going to increase during the holiday season. The previous policy had been in effect for a decade, and the increased minimum puts Amazon in the middle of major competitors like Best Buy ($25), Walmart & Target ($50). The change also is being used to promote Amazon Prime, a yearly $79 membership that offers unlimited free two-day shipping on products, plus streaming of movies and TV shows.

Unlike many of you, I don't buy CDs anymore and prefer eBooks when they're available, so trying to meet the minimum isn't a major concern. I buy a lot of different things on Amazon like cases of cat food, electronics, household items, some clothes, etc. So, while I can empathize with those of you who shop Amazon infrequently, I believe the increased minimum is justified given the rise in shipping costs over the past 10 years.

[thirdtry]

Between the changes in shipping policy and the fact they now collect tax in my state I'll be using Amazon a lot less. DeepDiscount and ImportCDs are almost always going to have a cheaper price now. I'll still use their marketplace sellers for older and oop things but as far as new stuff goes I don't think Amazon is going to be cheapest for me anymore.

[jlhoots]

I guess I'll defend Amazon (at least a little).

There's no free shipping at CD Universe, Dusty Groove, CD Baby, Squidco, East Wind, etc., etc. no matter what amount you buy.

Obviously certain sites work better for certain things & I still use all of the above (except CD Universe).

I combine books, CDs, DVDs at Amazon & it all seems to work out (for me).

[John L]

I've noticed that Amazon has also raised the prices on many of its MP3s, from under $10 a disc to $13 for many discs, from 99 cent song downloads to $1.29 a song.

I guess that Amazon has figured it out - "the people who still pay money for MP3s are such fools that we can charge them anything and get away with it."

[sonnymax]

I've noticed that Amazon has also raised the prices on many of its MP3s, from under $10 a disc to $13 for many discs, from 99 cent song downloads to $1.29 a song.

I guess that Amazon has figured it out - "the people who still pay money for MP3s are such fools that we can charge them anything and get away with it."

I don't think Amazon deserves to be singled out for the price increase you mention. In order to make a deal with the major labels, iTunes capitulated to their demand to raise the price of popular titles to 1.29. This allowed the labels to raise the price of these titles to other retailers like Amazon and ask them to pass this cost on to the consumer. Amazon is a smart company. I doubt that they relished the idea of increasing prices during a recession.

[Leeway]

I knew about the $35 min for free shipping, but I did not know about the sales tax for Virginia residents. As a consumer looking for the best deal, that's a bummer. However, I'm sure that retail merchants here in Virginia are pretty happy about that, because that will help level the playing field between brick and mortar stores and online sellers. Previously, buying locally amounted to paying a 4% (or more depending on where you are) penalty on each purchase.

[Jerry_L]

it's not just Virginia. Amazon is also charging sales tax in Pennsylvania, and probably every other state that has a sales tax. The free ride is over.

Edited November 25, 2013 by Jerry_L

[kinuta]

There's been no change here, all domestic orders are delivered free of shipping charge, regardless of the cost of the item.

[jlhoots]

it's not just Virginia. Amazon is also charging sales tax in Pennsylvania, and probably every other state that has a sales tax. The free ride is over.

Not every state.

[kh1958]

it's not just Virginia. Amazon is also charging sales tax in Pennsylvania, and probably every other state that has a sales tax. The free ride is over.

Not every state.

Only states where Amazon has a physical presence (like a distribution center) can require it to collect sales tax.

[JETman]

it's not just Virginia. Amazon is also charging sales tax in Pennsylvania, and probably every other state that has a sales tax. The free ride is over.

Not every state.

Only states where Amazon has a physical presence (like a distribution center) can require it to collect sales tax.

Incorrect!

[jlhoots]

it's not just Virginia. Amazon is also charging sales tax in Pennsylvania, and probably every other state that has a sales tax. The free ride is over.

Not every state.

Only states where Amazon has a physical presence (like a distribution center) can require it to collect sales tax.

Incorrect!

Tell us what is correct. No sales tax on Amazon orders here in New Mexico (& we do have a state sales tax).

[JETman]

it's not just Virginia. Amazon is also charging sales tax in Pennsylvania, and probably every other state that has a sales tax. The free ride is over.

Not every state.

Only states where Amazon has a physical presence (like a distribution center) can require it to collect sales tax.

Incorrect!

Tell us what is correct. No sales tax on Amazon orders here in New Mexico (& we do have a state sales tax).

We have been taxed here in NY since 2008 (I believe) without an Amazon physical presence (closest distribution centers at the time were in NJ). The argument made by the state was that if you're selling to customers residing in NY, you have a virtual presence there. This was considered the equivalent of a "physical" presence. Amazon intended to fight this, but I believe it has given up. This may be the result of promises having been made by New York Sate to Amazon, which MAY at this point have a distribution center here now. I wouldn't know for sure since I rarely buy from Amazon US proper anymore -- I find them to be too overpriced and not the cheapest game in town, especially for jazz recordings.

With all due respect to New Mexico, consumer consumption is much higher in NY (3rd largest state and all), so the NY state government had more reason to chase the "lost" tax revenue. Once NM enters the "red", your luck will run out as well.

[jlhoots]

it's not just Virginia. Amazon is also charging sales tax in Pennsylvania, and probably every other state that has a sales tax. The free ride is over.

Not every state.

Only states where Amazon has a physical presence (like a distribution center) can require it to collect sales tax.

Incorrect!

Tell us what is correct. No sales tax on Amazon orders here in New Mexico (& we do have a state sales tax).

We have been taxed here in NY since 2008 (I believe) without an Amazon physical presence (closest distribution centers at the time were in NJ). The argument made by the state was that if you're selling to customers residing in NY, you have a virtual presence there. This was considered the equivalent of a "physical" presence. Amazon intended to fight this, but I believe it has given up. This may be the result of promises having been made by New York Sate to Amazon, which MAY at this point have a distribution center here now. I wouldn't know for sure since I rarely buy from Amazon US proper anymore -- I find them to be too overpriced and not the cheapest game in town, especially for jazz recordings.

With all due respect to New Mexico, consumer consumption is much higher in NY (3rd largest state and all), so the NY state government had more reason to chase the "lost" tax revenue. Once NM enters the "red", your luck will run out as well.

So what's the "cheapest game in town".

Surely not DMG.

Happy to be where consumer consumption is not high.

[JETman]

it's not just Virginia. Amazon is also charging sales tax in Pennsylvania, and probably every other state that has a sales tax. The free ride is over.

Not every state.

Only states where Amazon has a physical presence (like a distribution center) can require it to collect sales tax.

Incorrect!

Tell us what is correct. No sales tax on Amazon orders here in New Mexico (& we do have a state sales tax).

We have been taxed here in NY since 2008 (I believe) without an Amazon physical presence (closest distribution centers at the time were in NJ). The argument made by the state was that if you're selling to customers residing in NY, you have a virtual presence there. This was considered the equivalent of a "physical" presence. Amazon intended to fight this, but I believe it has given up. This may be the result of promises having been made by New York Sate to Amazon, which MAY at this point have a distribution center here now. I wouldn't know for sure since I rarely buy from Amazon US proper anymore -- I find them to be too overpriced and not the cheapest game in town, especially for jazz recordings.

With all due respect to New Mexico, consumer consumption is much higher in NY (3rd largest state and all), so the NY state government had more reason to chase the "lost" tax revenue. Once NM enters the "red", your luck will run out as well.

So what's the "cheapest game in town".

Surely not DMG.

Happy to be where consumer consumption is not high.

I've always found importcds and cduniverse (although not so much anymore) to be cheaper. Amazon is smoke and mirrors. Their pricing algorithms are nonsense and the promise of free shipping is pure trickery. That being said, Euro Amazons are almost always cheaper than the US counterpart for big ticket items, even with the cost of shipping.

Being happy with living in a place with lower consumption is fine, but it's not simply about that. If your state government ever recognizes that it would be better off forcing Amazon to collect sales taxes in any amount, Amazon will collect the sales taxes.

[Rooster_Ties]

The $35 minimum doesn't bother me a bit. I've usually got several dozen things saved in my wish-list at any given moment, and 9 times out of 10, my Amazon purchases are over $50 anyway. I only order from them about 4 times a year, maybe 5 or 6 times max.

Edited November 26, 2013 by Rooster_Ties

[BruceH]

In California, Amazon started charging sales tax one or two years ago. And that sucks because our sales tax in high.

[gmonahan]

Oregon has no sales tax, so no problem here...well, except that not having a damned sales tax screws up state finances and starves important programs!

gregmo