NEW YORK — Target has sliced its minimum online purchase to qualify for free shipping in half to $25 as the Internet becomes a bigger and bigger sales hub for retailers.
The minimum takes aim at competitors Walmart and , both of which have higher minimums for standard purchases, and could be another step toward eliminating separate shipping fees.
Target said free shipping is now available to all online orders coming from the continental U.S. or from military postal facilities. The company says handling fees may still apply to some orders.
Amazon and Walmart may follow suit or cut their minimums even further, said Brian Sozzi, CEO and chief equities analyst for Belus Capital Advisors.
“The U.S. consumer now views free shipping as a right,” said Sozzi. He said he thinks retailers will do away with the charges altogether in a few years. They can do that, Sozzi said, because they are building more distribution centers, which makes it easier and cheaper to ship items.
