Amazon Finds Another Way to Crush the Competition
Amazon.com (NASDAQ: AMZN) has found a new way to hurt its retail competition, offering free next-day delivery for products that cost $5 and under.
The e-commerce giant is making it easier for Prime members to get free shipping on items that are priced below $5. That means customers can get shampoo, soap, toothpaste, and lots of other products in one day without paying for shipping. Previously, Prime members needed a minimum order of $5 for free delivery.
By giving shoppers another reason to avoid visiting a store, Amazon could weigh heavily on the likes of CVS (NYSE: CVS) and Target (NYSE: TGT), which make money on cheap necessities like toothpaste, deodorant, and shampoo. Consumers can choose convenience over immediacy, boosting Amazon's sales at the expense of the two retailers, which have already been forced to reinvent themselves by Amazon.
Source Fool.com
