Amazon abandons free shipping, e-commerce capital tightening may cause "free shipping" to become a thing of the past

Amazon got 29 yuan free of charge yesterday

Amazon China website announcement shows that new orders generated since 7:00 am yesterday will be subject to the new rules of preferential delivery fees. "You can enjoy free delivery service if you buy qualified goods of more than 29 yuan (including 29 yuan). If the amount of qualified goods is less than 29 yuan, you need to pay 5 yuan for delivery."

It is worth noting that while setting the free freight threshold, Amazon China announced that it launched its Tianjin operation center yesterday, further improving its strategic layout in North China. Wang Hanhua, president of Amazon China, believes that warehousing logistics is the key to the sustainable development of e-commerce, and revealed that "our investment in warehousing logistics will have a strategic growth this year".

B2C stopped paying for logistics

In fact, this is the third large B2C enterprise to set the free freight threshold since the end of last year. At the end of November last year, JD Mall began to charge 5 yuan for delivery of orders less than 39 yuan. Later, Newegg China also announced that it would implement a new logistics policy from December 31 last year, cancel the "free freight for all" rule, and charge 4.5 yuan for the orders in Beijing, Shanghai and other self built logistics cities that use less than 99 yuan. At that time, insiders of Newegg China frankly said that cost was one of the reasons.

Huang Gang, director of China Logistics and Supply Chain Management Alliance, believes that the e-commerce model has been clear, and that "in the future, the core of e-commerce industry competition will be transformed into operation management and technological innovation".

Borrowing price increase and gross profit rate increase have become a consensus

A number of B2Cs expressed support for the establishment of freight free threshold for many peers. Peng Liang, vice president of Kuba.com, said, "Although Kuba.com will not make any adjustment in terms of freight policy at present, e-commerce is not wrong in charging freight, and foreign B2C websites do not say free of freight.".

Chen Shousong, an analyst at Analysys International, believes that e-commerce will no longer be free of freight, which is a disguised price increase. This can control the number of low price orders, so as to increase the customer price, reduce the promotion and operating costs of each order, and increase the gross profit rate through this method.

In fact, as early as 1-2 years ago, domestic e-commerce enterprises did not have a free freight policy. "In order to occupy the market as soon as possible, some B2Cs proposed the temptation of free shipping to attract users, forcing other peers to passively join this queue." Chen Shousong explained. He further said, "In view of the multiple pressures of capital, low gross profit and personnel costs, if several e-commerce companies levy freight, it will cause other peers to follow up, and domestic e-commerce free freight will become a thing of the past".