Amazon Cuts Order Total for Free Shipping

Amazon.com Inc. cut in half the amount shoppers must spend to get free shipping as the world’s largest Internet retailer tries to boost sales and gain customers.

Shoppers who spend $25 or more for certain products get free shipping under a test program, the company said. Amazon.com in June reduced the minimum purchase required for free shipping to $49 from $99.

Free shipping is an attempt to turn browsers into buyers and get customers to order more, the company has said.

Amazon.com also expanded discounts in April, offering a 30% price reduction on any book with a publisher’s list price of more than $15. The retailer previously offered the discount on books of more than $20.

“This is part of their broader strategy of lowering prices,” said Dan Geiman, a McAdams Wright Ragen analyst. Geiman has a “buy” rating on Amazon shares and said he doesn’t personally own the stock.

Barnes & Noble.com Inc., the second-largest U.S. Internet bookstore, offers free shipping when customers buy at least two items, with some exclusions, according to its Web site. The site, 36% owned by Barnes & Noble Inc., offers 40% discounts on bestsellers.

Amazon’s test of a $49 threshold for free shipping went well enough for the company to lower it, Chief Executive Jeff Bezos wrote in an e-mail to customers. He said the offer may be permanent, depending on test results.

Customers who opt for free shipping will have delivery times as much as five days longer than Seattle-based Amazon.com’s regular services.

Shares of Amazon.com fell 24 cents to $14.93 and Barnes & Noble.com rose 2 cents to 75 cents, both on Nasdaq.