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FTC Suggests Possible Amazon Breakup in Antitrust Lawsuit

| Mike O'Brien

The Federal Trade Commission and 17 state attorneys general filed a long-expected antitrust lawsuit against Amazon, with the FTC accusing the company of monopolistic behavior on a broad scale and suggesting a breakup as one form of injunctive relief. The company used its market power to block competition, inflate prices and degrade product quality, the FTC alleges.

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Amazon Free Shipping Threshold Shift a Win Either Way

| Mike O'Brien

Amazon is testing pricing for non-Prime members to get free shipping in selected areas, raising the threshold from $25 back to $35 – the same as for shoppers who aren’t members of Walmart+ – as it probes the potential to increase order value when shoppers add items. Amazon has yo-yoed the order threshold as it reads the tea leaves of analytical data on shopper behavior and pulls the levers.

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Amazon Charging Non-FBA Sellers, Offers Pittance to Influencers

| Mike O'Brien

Amazon will start charging a 2% per-item fee to merchants using Seller Fulfilled Prime (SFP) starting in October, Bloomberg reports, while the company is offering influencers the equivalent of $25 a video to populate content promoting its listings as it seeks a bulwark against Chinese social giant TikTok.

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Nearly a Quarter of Monthly Amazon Prime Subscribers Go On, Off

| Mike O'Brien

Just under a quarter of monthly Amazon Prime subscribers (23%) dropped the service for some period of time in the past year, with 41% having it for six months or less, most likely dipping in and out as their needs or checkbook dictate, according to Consumer Intelligence Research Partners (CIRP) data.

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Walmart Offers 50% Off Walmart+ to Boost Subscriptions

| Mike O'Brien

Walmart is offering half off on new sign-ups to its $98-a-year Walmart+ subscription program, an offer which expires today, in a bid to boost membership ahead of Cyber Weekend and the rush to the conclusion of the peak holiday season. The giant retailer is also throwing in access to early Black Friday deals starting Nov. 7.

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Amazon Raising the Cost of Prime Up to 43% in Europe

| Mike O'Brien

Nearly six months after doing so in the U.S., Amazon is increasing the cost of Prime in the UK and Western Europe by up to 43%, as it too battles inflationary pressures and higher operating costs. German Prime members will see a 30% increase, with a 20% bump in the UK; Spain, Italy and France will see annual increases between 39%-43%.

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Walmart Makes Convenience Play, Combining Subscription Programs

| Mike O'Brien

Walmart is adding its in-home delivery service an option for Walmart+ subscribers, making it easier for them to access the service through a single registration as it expands to new markets. Amazon for its part is giving Prime members a year of free GrubHub deliveries, while getting an option for a 2% stake in the company.

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Walmart Rolling Out Four High-Tech FCs

| Mike O'Brien

Walmart plans to open up four high-tech, automated fulfillment centers over the next three years, which when completed will enable it to reach 95% of the country in the Amazon Prime standard of two days or less, while streamlining fulfillment processes and increasing throughput. The news drops between a Q1 miss and Prime Day.

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Shopify Acquires Deliverr for $2.1 Billion

| Mike O'Brien

Shopify is acquiring asset-light last-mile startup Deliverr for $2.1B, further building out its fulfillment infrastructure and giving it a counter-move to Amazon’s new Buy With Prime that extends the Prime experience to other retailers. But the question is, will it be enough to enable Shopify to gain ground on its much larger competitor?

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Amazon Air Expands to Des Moines

| Mike O'Brien

Amazon Air this week has begun operations at Des Moines International Airport, helping to expand same-day delivery for Prime members in the Hawkeye State as its cargo operations continue to spiderweb across the country, increasing Amazon’s independence from traditional air freight carriers.