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Amazon Pegs Holiday Shipping Savings at $2 Billion

Amazon said its customers saved $2 billion in shipping costs this holiday season through its Prime and Free Shipping programs, and it saw record growth for Prime (see Monday’s Newsflash story).

“On all items purchased this holiday season, customers saved over $2 billion on free two-day shipping through Amazon Prime and other free shipping offers. Additionally, 100 million more items shipped for free this holiday compared to last.”

While Prime is a subscription service – shoppers pay $99/year to be eligible to receive free 2-day shipping on most items – Amazon’s Free Shipping program is offered to all shoppers, who receive free shipping on orders over $35.

Amazon said over the last few years, unlimited Free Two-Day Shipping with Prime has become the preferred shipping method among Amazon customers.

Amazingly, Amazon now ships more than twice as many items with Prime than with Free Shipping.

Interestingly, a new Free Economy Shipping option showed up in August. “We want sellers to think seriously about offering free shipping for all their products,” Amazon told sellers, adding, “Offering free shipping can increase sales and may help sellers with Professional selling plans compete for the Buy Box.” (See Can Sellers Afford Not to Offer Free Shipping on Amazon).

Jeff Wilke, Senior Vice President, Amazon.com, said in Monday’s announcement, “This holiday season, Amazon shoppers saved billions through free shipping, and even more through our low prices. We are especially excited that 10 million new customers tried Amazon Prime for the first time.”

Amazon also included examples of tweets from customers who “Love Saving with Amazon,” including the Twitter user @kaylakinnison who tweeted last month, “Thank god for Amazon Prime. I can’t even keep track of how much money I’ve saved on shipping, plus everyday discounts. #amazonobsessed.”

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.