Amazon has doubled the minimum spend required for its supersaver delivery service. Customers now need to spend a minimum of £20 to qualify. The article speculates that this is due to Amazon losing £36m last quarter but I tend to agree more closely with Mader from the Kantar Retail consultancy, who the BBC says is an expert:
There is always a pressure on Amazon from its investors to increase profitability, but I think the bigger factor is trying to shepherd people into Prime membership as well as improving the margins on each basket.
Prime is clearly the long-term strategy for Amazon and – which is always suspicious – you get quite a lot for your £79 a year. The Prime free delivery service alone is attractive if you order a lot of stuff from Amazon, and of course we’re more likely to order preferentially from Amazon if delivery is free. But Prime comes with extras, most notably its on-demand video service. It has a lot of good content, much of it free to Prime users. “Ow, right in the privacy” as a friend just said.