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Toys ‘R’ Us lowers its free shipping minimum

September 9, 2015 05:05 PM
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A major retailer is hoping the recent reduction of its free shipping threshold brings as much joy to parents as toys bring to children.

Toys ‘R’ Us Inc., No. 40 in the Internet Retailer 2015 Top 500 Guide, has slashed its free shipping threshold on online purchases to $19, a decrease of more than 61% from its previous free shipping order minimum of $49.

“Based on current insights and a comprehensive review of the competitive landscape, we've decided to drastically lower our free shipping minimum, just in time for the holiday season," Matt Blonder, Toys ‘R’ Us vice president of e-commerce, says.

The $19 cutoff gives Toys ‘R’ Us one of the lowest free shipping thresholds among the top 40 retailers in the Top 500 Guide. It’s also not the first time a retailer has lowered its free shipping minimum this year to woo online shoppers. In February, Target Corp. cut its minimum to $25 from $50.

Nordstrom Inc. (No. 19) and L.L. Bean Inc. (No. 34) offer free shipping regardless of order size. Here’s a look at how Toys ‘R’ Us stacks up against other major retailers in the top 40:

  • Amazon.com Inc. (No. 1): $35
  • Walmart.com (No. 3): $50
  • Staples Inc. (No. 4): $49.99
  • Sears Holdings Corp. (No. 5): $49
  • Macy’s Inc. (No. 7): $99
  • Office Depot Inc. (No. 8): $50
  • The Home Depot Inc. (No. 10): $45
  • Best Buy Co Inc. (No. 14): $35
  • Target (No. 16): $25
  • Gap Inc. (No. 18): $50
  • Williams-Sonoma Inc. (No. 20): $49
  • Kohl’s Corp. (No. 22): $75
  • Overstock.com Inc. (No. 31): $50
  • Wayfair LLC (No. 33): $49
  • J.C. Penney Co. Inc. (No. 37): $99

Top500Guide.com data shows that Toys ‘R’ Us has experienced steady e-commerce growth over the past five years, reaching  an Internet Retailer-estimated $1.2 billion in 2014 from $782 million in 2010 , an average annual growth rate of 8.94%.

 

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