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    Target Lowers Free Shipping to $25 for Online Orders

    New fee undercuts competitors

    In a bid to accelerate its ecommerce cred and best established online retailers' shipping fees, Target Corp. is now offering free shipping for all online orders of $25 or more now with virtually no exclusions. The new $25 minimum, decreased from $50, makes Target’s new free shipping threshold among the most compelling in online retailing.

    “Lowering the free shipping threshold from $50 to $25 is one more way Target is putting guests first and making it easier for them to shop Target when and where they want,” said Jason Goldberger, president of Target.com and its mobile division. Buoyed by "enthusiastic response" to free shipping the Minneapolis-based retailer offered over the holidays, as well as companion strong digital performance during the 2014 holiday season, Goldberger said the move is in line with a goal to "be one of the best in all of retail.”

    Target.com posted new sales records on Thanksgiving and Cyber Monday, while its mobile sector accounted for 60 percent of its digital traffic. Further, Target’s Cartwheel digital coupon app has added 2 million new users since launching in 2013 to surpass $1 billion in promotional sales.

    Target’s new $25 minimum is among its suite of free fulfillment options, including "always-free in-store pickup for eligible products – with more than 80 percent of orders ready in one hour – and free shipping on virtually all online purchases when using a Target REDcard."

    What is most significant about Target's revamped shipping model is that it undercuts the price of its top mass retailer rival Walmart.com's minimum $50 purchase, and Amazon.com's minimum free shipping charge by $10 (with the same 3-5 day delivery pledge), notwithstanding Amazon Prime, whose $100 annual members receive free, two-day shipping.

    To support its online growth, Target said it began shipping a portion of its online orders from select stores late last year, early results of which have been positive as a result of shorter shipping times and improved inventory management. To further those results, Target will open two new online fulfillment centers in Memphis, Tenn., and York, Pa., to further enhance its shipping capabilities.

    Complete details on Target’s shipping offer are available here.


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