As I mentioned in my 2022 reflection, my article about Best Buy eliminating the Elite tiers has and is still receiving a lot of attention. The My Best Buy program, which has been around for years and is free to join, allows shoppers to earn points on purchases to earn certificates to spend at Best Buy, along with a few other benefits. Customers who spent $1,500 or more and $3,500 or more in a calendar year received extra perks, most notably free shipping on orders instead of needing a $35 minimum.
However, in May 2022, Best Buy unceremoniously consolidated My Best Buy into a single level, and those who had earned Elite benefits had those bonuses taken away. For instance, the ability to “bank” points instead of automatically issuing a certificate when reaching 250 points was restricted to My Best Buy credit card holders. As you can see from comments here, many Best Buy customers were bewildered and angered by the sudden change, with many saying they had no idea until they tried to use their Elite benefits.
Free shipping is one of a store’s biggest expenses if they offer it, so retailers are always looking for ways to curb those costs.
In Best Buy’s case, though, the motive for ending Elite seemed clear: they wanted people to join Totaltech. For $199.99 a year, members would receive benefits like exclusive pricing on items, VIP support, extended returns, and free shipping — perks that were previously tied to Elite and Elite Plus. However, Totaltech isn’t a complete copycat; most notably, items purchased at Best Buy would receive an extended warranty (up to 24 months) for most purchases as long as the membership is active.
However, Best Buy is once again implementing changes to its rewards programs. And here’s where we play the age-old game of, “Do you want the good news first or the bad?”
The Bad News
Well, let’s start with the latter. Best Buy is not delivering a sweet surprise on Valentine’s Day this year. As of February 14th, by default, My Best Buy members will no longer earn points on purchases. Points will only be earned by using a My Best Buy credit card. By using the store branded card, customers will earn 5% back on their purchases, or 2.5 points per $1 spent. 250 points will still be equivalent to a $5 certificate.
The Good News
However, as of January 9th, Best Buy has added a perk for all My Best Buy members: free shipping.
Yes, no more $35 minimum just by signing up for a free My Best Buy account. Larger items are still subject to delivery fees, but items like movies, games, and collectibles can all eligible for free shipping.
While I listed these changes as good news and bad news, I’m sure for a lot of people, it’s not quite that black and white. The reward points being eliminated is probably not a big deal for casual Best Buy shoppers, and bigger spenders may have already been relying heavily on a Best Buy credit card to maximum the rewards earned on purchases. Meanwhile, free shipping may not be that exciting considering Best Buy centers around tech and media products, and with stuff like computer accessories and movie box sets, it doesn’t take long to reach $35. Plus, a lot of people likely rely on store pickup.
Still, free shipping with only a free membership required is something other major competitors don’t have. Walmart requires $35+ or a subscription to Walmart+ at $99 a year, Target offers free shipping on most items with no minimum but signing up for a (debit or credit) card from them, and Amazon’s minimum is $25 or free with Prime at $139 a year. At least from my initial browsing, Best Buy’s free shipping seems to be in line with those stores’ estimated delivery dates. Some items would ship faster with my Prime/Walmart+/RedCard than My Best Buy, some about the same, and still others would arrive faster from Best Buy. In the evening of January 9th, for instance, Target gave me a delivery date of the 13th for all the versions of Sonic Frontier, Walmart the 12th through the 18th depending on system, and Amazon the earliest was the 16th for PS5 but as late as the 24th for Switch. Best Buy’s site showed I could get any version on the 11th.
Of course, as I said, that is an example in Best Buy’s favor. But at the very least, Best Buy’s free shipping no minimum isn’t automatically going to be the slowest option. In fact, they even advertise it’s possible to get next day delivery for free with My Best Buy.
Plus, between frequent sales and their price match policy, shoppers have a reason to visit Best Buy’s site or choose to order from them versus one of the competitors.
However, the lack of reward points also gives shoppers reasons to shop elsewhere. Before, even with cash or other credit cards, people could slowly accumulate points to earn $5 certificates. Now, that perk is only for purchases with Best Buy cards. Depending on your circumstances (what stores are in your area, what you’re shopping for, payment methods, etc.), it may be just as or more beneficial to go to another retailer. Target, for example, often has missions where you can earn reward dollars by making multiple purchases within a time limit (e.g. earn $10 by spending $60+ three times). All shoppers at Staples can sign up for their free rewards program and earn 2% back on purchases (5% by spending $1000+ within a year). GameStop PowerUp Members earn 10 points per dollar, with 5,000 points equaling $5. If you’re shopping for something that’s already eligible for free shipping elsewhere (i.e. something $25/35/$100+) or you have other brick-and-mortar stores in your area, there’s no real incentive to choose Best Buy now unless you have their card and are going to use it.
Unexpected Changes
Still, free shipping is a shocking new benefit, and if they were planning on challenging Amazon/Walmart by implementing free shipping for all members, there was no reason to abruptly cut off Elite members’ perks mid-year.
That being said, it’s unlikely Best Buy had been planning this for a while. Although Totaltech is supposed to be free 2-day shipping versus standard with My Best Buy, that’s still a major benefit that now isn’t as exciting. We don’t know yet how Best Buy’s holiday sales were, but the retailer did estimate a drop compared to the previous year. However, Best Buy was more optimistic after Black Friday despite laying off people before the holiday season.
At least one analyst is predicting a poor Q4 for Best Buy, which covers from November to January. And this Bloomberg Second Measure‘s analysis shows Best Buy lost traction both online and in-store during Black Friday versus more positive results for Target and Walmart, and it’s part of an recurring annual decline for the retailer.
Perhaps all those upset Elite members who swore off the retailer did make a difference in Best Buy’s bottom line?
Still, this change seems like it’s meant to jumpstart some casual shoppers into swinging by their site, and the retailer looks like they’re willing to sacrifice money back from bigger spenders/purchases to pay for it. But speaking of paying, Best Buy likely need something else to make Totaltech more “worth it” since $200 a year is rather steep considering it’s just slightly faster shipping and several warranty/installation perks that people aren’t likely to take advantage of a whole lot of outside of extreme difficulties and remodels. I won’t be surprised if it undergoes some changes like My Best Buy is. Perhaps now is the time to strike considering Costco’s credit card is removing their extended warranty?
Anyway, I haven’t shopped a lot at Best Buy recently, as I generally haven’t had a reason to go with them over my usual free shipping haunts from my memberships. But now I do, and I especially am interested in perhaps price matching GameStop’s sales, as they require $59 for free shipping, which negates any savings since I have to buy more anyway. I have price matched GameStop at Target, but Best Buy and GameStop have more similar selections. Still, like a lot of people, I’ll probably always check Amazon first, as I’m just so used to shopping there.