Amazon gives non-Prime members free shipping at $35 or more of eligible items. Instead of simply letting users get the product with free shipping, they’ve added a discount that prices it exactly one cent below the $35 limit, while only subsidizing the price with $3.38, which is about half of what they’ll then charge you for shipping.
I’d just never seen this specific flavor of bullshittery from them before. Encouraging sellers to keep prices below the shipping limit is one thing, but adding discounts artificially no matter what the actual seller prices their product at is a whole new level of making things worse for everyone involved.
Sellers have a lower likelihood of a non-Prime member buying their item, users don’t get free shipping.
They likely have an algo running to do this just like how they offer random coupons to entice you to buy items in your cart, and all the other tricks around shipping manipulation.