Is Free Shipping Dead?
A recent Retail Wire post asked its readers if free shipping is a “thing of the past?” It noted that free shipping went from an “exciting perk to a customer expectation” (thanks to Amazon). But now, due to rising costs, the post’s writer, Matthew Stern, says, “Retailers, including Amazon, are?dialing back?free shipping policies to maintain profit margins.”
I noticed the same thing while online shopping this year. Many well-known brands with $50 free shipping minimums raised the minimum purchase to $75. Other companies that featured “free shipping sitewide” promotions had more exceptions than previously.
Amazon increased the price of its Prime membership to $139, but
“no longer guarantees?two-day shipping?on all orders.”
Stern also reports that companies like Starbucks and Dunkin’ “raised the threshold?for their rewards program members.”
There are exceptions among major retailers, of course. Stern says Kohl’s increased sales by lowering their free shipping threshold from $75 to $49.
Stern’s readers added their insights into how companies might be able to eliminate the free shipping option.
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Those who think free shipping was no longer viable as a regular option:
Those who thought free shipping was still viable:
While shipping costs are no doubt eating at your margins, calculate how much business you might lose if you charge for shipping before you eliminate the option. Shippo’s State of Shipping Report reveals that only 3% of consumers say they don’t care about shipping costs, 42% say they’d join a loyalty or membership program in exchange for free shipping, and 47% say they’d meet a minimum payment to qualify for free shipping.?
Maybe having to pay for shipping will drive customers back to the stores! The internet has killed retail!
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1 年This is such a great, relevant topic. Costs are going up for businesses, so offering free shipping is becoming less viable for them. But consumers are demanding free shipping now more than ever! The Amazon business I support is trying to help ecommerce businesses address that with Buy with Prime—Prime shopping benefits directly on their sites. Rieva, I'd love to chat with you about what we're doing and see how your voice as a SMB expert would be great for our readers and customers.