Here's a reason to think twice about buying into Amazon and Walmart's free next-day shipping
Amazon AMZN, +0.81% recently announced it had begun free one-day delivery nationwide for Prime members, who pay $119 per year, with no minimum-purchase threshold. And Walmart WMT, -0.16% said it would introduce free “NextDay” delivery on 220,000 commonly purchased items.
Walmart debuted free two-day shipping on $35-and-up orders in 2017. Competitor Target TGT, +0.05% also offers free two-day shipping at the $35 minimum and announced Thursday it would debut $9.99-per-order same-day delivery of 65,000 items. Meanwhile, non-Prime Amazon customers get free regular shipping on eligible items totaling a $25 minimum.
Free shipping is a big incentive for click-happy consumers. Nearly eight in 10 people cite free shipping as a factor that would make them more likely to shop online, according to the latest Walker Sands Future of Retail Report. And 54% of people under 25 ranked same-day shipping as their top purchase driver.
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