Amazon Avoids French Law Prohibiting Free Shipping With 1 Cent Charge
Ryan Martin / 4 years ago
A law in France that came into effect recently has prohibited online-only retailers from offering free shipping and discounts to customers. The law, described as “anti-Amazon”, is hoped to bring back a competitive advantage to “bricks and mortar” book stores over online giants like Amazon. With the law in place Amazon have now complied with the new guidelines, but have arguably defied “the spirit” of the law. Instead of offering free shipping Amazon will now charge a measly €0.01 shipping for its customers. French Amazon Prime members will still be entitled to free next-day shipping because they have technically already paid for the shipping service they get in a subscription based model. For Amazon the new law is still a big let-down, they are not allowed to offer 5% discounts on books (the maximum amount allowed by French law), something that bricks and mortar stores can do even if they have a large online presence. Bricks and mortar stores can also offer free delivery. Amazon are expected to appeal the decision to EU courts who are likely to see the new law as anti-competitive.
Image courtesy of Goodman