I was always surprised they were able to offer free shipping for all orders within the UK to begin with, since there's no way it cost them nothing. £3.50 per order is still almost nothing compared to their international shipping cost, and in my experience it's a fairly standard rate for domestic shipping, at least over here. But maybe the UK is a fairy tale land where free shipping is the norm? I don't really know since I only buy anime from there.
The lack of IOSS news is disappointing since they've been "looking into it" for years now.
Free shipping isn't the norm in the UK, but it's not exactly uncommon. The UK's biggest online video game outlets (TGC and ShopTo) offer free shipping on all their orders, for example.
The UK's biggest bookshop, Waterstones, provide free delivery on orders over £25. Rarewaves sells all sorts of physical media and they have free shipping when you spend £10 or more, as another example. Zavvi charge £1.99 for all orders. HMV has free delivery on orders over £25 as well.
I also think Amazon and Amazon Prime have a lot to do with our perceptions of shipping costs (I'm guilty of this myself). If you buy with Amazon Prime regularly, it can be difficult to go to a "regular" retailer that charges £4.99 for standard delivery and takes 3-5 days to arrive.
I don't begrudge Anime Limited for deciding to charge for delivery on orders below £50. They got to do what they got to do, to survive as a business and I would assume they aren't as big as a player like HMV and other places where they can continue to absorb more of the cost. However, I will be thinking twice about buying a single random Blu-ray from them as you can slap £3.50 onto the final price now; a lot of the time you can buy their products for the same initial price or less from another retailer that does offer free shipping. Although, for pre-orders I would assume AL will continue being the cheapest with their EBs and 10% off for members.
Waiting for AL sales and grabbing a bunch of stuff you want, to get over the £50 threshold will probably be the way to go. But I'm just thinking about the singular EB pre-orders that are less than £50, like others have mentioned. It may be a case of just looking around more for the best price available with the cost of shipping included.