Amazon announced today it will offer free same-day shipping, seven days a week, to customers with Prime memberships in Toronto and Vancouver who order more than $25-worth of merchandise from the website.

The announcement was made a week after the online retailer increased its free-shipping minimum to non-members to $35.

“It really allows you to order online with a much greater level of convenience,” said Alexandre Gagnon, country manager for Amazon.ca, who has himself used the service while travelling.

The service was made available to Amazon Prime subscribers in the U.S. about a year ago and is available in Europe and Tokyo.

“Personally, I have a knack for losing my USB cable, so that’s been very useful, especially when I’m not at home,” said Gagnon.

He said tech items and children’s toys have been popular purchases in countries where the service is already available.

Gagnon said the launch of the service has nothing to do with the recent $10-increase in the minimum purchase required for shoppers without a Prime membership to qualify for free delivery.

Prime membership costs $79.99 a year in Canada, but Canadians don’t get the same full suite of services that U.S. Prime members get for $10.99 (U.S.) a month, which entitles them to free video and music streaming.

“The two programs are in two separate countries. For Canada, we’re focused on adding benefits over the years,” said Gagnon.

Not everything on the site is eligible for free same-day delivery, but Gagnon said that free same-day delivery will include one million items in the Toronto market and 700,000 in the Vancouver market, across a wide array of categories.

In the U.S., Amazon has gotten into the delivery business in a meaningful way. Bloomberg Businessweek reported August that along with leasing jets and buying trailers, Amazon has opened more than 28 sorting centres, 59 delivery stations that feed packages to local couriers, and more than 65 Prime Now hubs stocked with best-selling items that can be rushed to customers around the world.

Amazon declined to say whether it is in the delivery business in Canada, only that it uses a variety of carriers for a number of its services.

In the count-down to Christmas, shoppers can expect to see retailers competing on delivery service charges as well as price promotions.

“Shipping will absolutely play into our holiday promotion strategy,” said Hudson’s Bay Co. spokesperson Tiffany Bourré, citing free upgraded shipping and free shipping days as examples.

“We don’t offer same-day shipping. However, we have extremely competitive delivery times across the country. We are investing in robotic technology in our distribution centres that is leap-frogging us to the forefront of e-commerce fulfillment.”

Free shipping is available to Hudsons’ Bay credit card holders with a $45-minimum-purchase ($29 on beauty orders), or a $99-minimum-purchase for shoppers without an HBC credit card (and $49 min. on beauty orders).

The minimum purchase threshold to qualify for free home delivery at Walmart.ca is $50.

“I think consumer expectations are now, to a certain degree, almost trailing the retailer’s lead, whereas before it was the other way around,” said Jeremy Bodenhamer, CEO of ShipHawk, a U.S. based delivery solutions firm

“Most stuff you don’t need ‘today,’ but the more stuff that’s available today, the more stuff you’ll consider getting; your expectations will change over time.”

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Density is key when it comes to keeping delivery costs down, said Bodenhamer.

Offering free delivery with some items also makes it possible for Amazon to move specific inventory, as the cost of delivery is the deciding factor for many online shoppers, said Bodenhamer.

“Free shipping is a powerful tool that retailers have to help control the buying behaviour on their site.”

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