Target Expands Free Shipping, Cuts Threshold by Half
Feb. 26, 2015
This week, Target announced it is cutting the minimum order value to qualify for free shipping in half. The Minneapolis-based company said free shipping over the holidays generated “an enthusiastic response” it wanted to capitalize on, so it has lowered the threshold for free shipping from $50 to $25. Target said it is emphasizing e- and m-commerce after what it calls a “strong digital performance” over the just completed holiday season.
“Target.com set new sales records on Thanksgiving and Cyber Monday, while mobile accounted for 60 percent of Target.com traffic,” said Jason Goldberger, president of Target.com and Mobile. “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.”
Target’s move puts its dollar threshold for free shipping $10 below Amazon (for non-Prime members) and $25 below Walmart. It also enhances its omnichannel shipping options adding to in-store pickup (which is available for eligible products) and shipping some Target.com orders from select local stores to generate shorter shipping times.