Recently, Target announced that it has cut its minimum purchase requirement for free shipping to just $25 – which means that Target now has the lowest free shipping minimum among top online businesses.
There are a few obvious reasons why Target is making a big effort to beef up its online presence and perks:
- Making Up for Past Mistakes – While it’s old news for most of us that Target had a massive security breach during the 2013 holiday season, Target is still recovering from past customer reactions and sentiments. One way to get customer loyalty back on your side? Offer free shipping!
- Keeping the Positive Vibes Going – This $25 free shipping requirement follows the positive response Target received from shoppers when it offered free shipping during this past holiday season, as opposed to its regular $50 minimum.
- Upping the Ante with the Big Dogs – The announcement also comes at a time when competition is getting more aggressive. Target is feeling the pressure and is making moves to undercut other big competitors such as Amazon and Wal-Mart, which offer free shipping minimums for $35 and $50 respectively. Amazon also offers free 2-day shipping with no minimum to its Prime members.
According to the National Retail Federation, 66 percent of U.S. consumers say free shipping is “very important” when deciding where to shop online, so clearly Target’s efforts are headed in the right direction.