Online retailer Amazon.co.uk is to offer year-round free delivery on orders of more than£39.
Last week, the e-tailer posted fourth-quarter results and reported that free shipping - now available on US, UK, German, French, Japanese and Canadian sites - had increased shipping losses 172 per cent during the quarter to US$30 million (£18.3 million).
However, the online giant regards the service as an integral part of its low-price stance, and believes it is well-placed to bear the cost. Amazon.co.uk managing director Robin Terrell said: 'If you look back over the past nine or 10 quarters, we have shown substantial progress in our cashflow and we believe we are able to lower prices.'
As part of its price-cutting policy, Amazon.co.uk is also lowering chart CD prices to£8.49 and, to tie in with the forthcoming Brit Awards, is extending its EDLP strategy to Brit Awards nominee CDs.
In an effort to become an online general retail category killer, Amazon is eyeing up new shopping categories and is particularly keen to extend its electricals offering.
For the fourth quarter, Amazon.com reported higher than expected pro-forma profits, up 114 per cent at US$75 million (£45.8 million). Sales rose 28 per cent to US$1.4billion (£874 million), beating analysts' projections.
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