FedEx report emphasizes consumers’ preference for free shipping
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For big players like Amazon, Walmart, and Target, offering free shipping is part of their dominance strategy. They have the scale, fulfillment networks, and membership programs to subsidize shipping costs. But for smaller retailers, the math is brutal.
Many e-commerce brands can’t afford to eat the cost of shipping, so they pass it on in subtle ways:
- Raising product prices to offset shipping expenses.
- Setting minimum order values to make free shipping cost-effective.
- Using slower, economy shipping to keep costs low.
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