Online retailers are finding it increasingly difficult to sustain free shipping as costs continue to rise, and the e-commerce industry faces a possible recession.
Retailers are taking measures such as adding fees for faster service, raising minimum purchase requirements, and shifting more costs to consumers. Product inflation and soaring shipping costs are making the service unsustainable as the industry rethinks the financial cost of habituating shoppers to free shipping.
Retailers' top priority is lowering shipping costs, with speed a close second. Shipping cost reduction goals of up to 25% have been set by some retailers. Amazon has recently raised the annual Prime subscription price by $20 to $139 and is now offering "free" same-day shipping for Prime members in some U.S. cities with strings attached, meaning that the service is free only on orders of at least $25 and costs $2.99 when orders fall below that.
As cost pressures continue to rise, free, fast shipping is fading, with many retailers dropping free shipping altogether or taking product prices up again.












