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Target’s Bold Holiday Pricing Strategy May Make You Dump Amazon (TGT) | Motley Fool

How does this differ from Amazon?
Amazon offers non-Prime members free shipping on orders over $35 sent to one address. Prime members pay $99 a year for free, two-day shipping on millions of items that Amazon stocks in its fulfillment centers.

Target’s free shipping offer will likely be enticing to customers specifically because many gift items cost less than $35, so adding a shipping charge can make the overall order dramatically more expensive. This will vary from item to item as Target and Amazon can have vastly different prices, but it will often be a major factor.

Let’s look at how it would work for one popular children’s toy, Playskool’s Sesame Street Lullaby and Good Night Elmo.

Amazon sells the toy to non-Prime members for $14.74 but would add an additional $6.27 for standard shipping in the United States (3-5 days, which is the same as what Target is offering for free).

Target sells the same product for $14.79, but offers free shipping.

That makes the buying choice pretty clear — it’s cheaper to buy from Target.

Read complete article here:

Target’s Bold Holiday Pricing Strategy May Make You Dump Amazon (TGT).

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