Confusion over shipping costs

The National Retail Federation is reminding consumers that Free shipping isn’t free…but it works

By ·

The National Retail Federation is reminding consumers that Free shipping isn’t free…but it works.

According to the NRF, there’s a dirty little secret: retailers have a love/hate relationship with free shipping. Why? For starters, it’s hardly free – after all, somebody has to pay for the but shoppers have tunnel vision for this incentive and have come to expect free shipping like they expect low prices. And retailers are listening.

NRF notes that Shop.org, is predicting that a record 92.5 percent of online retailers will offer free shipping this holiday season – and “that’s not only going to be a Cyber Monday staple.”

Free shipping offers are likely to be found all holiday season long, as 56 percent of retailers say their budgets for free shipping are higher this holiday season than last and one-third say free shipping offers will start earlier in the season than last year.

The dilemma for retailers has become weighing the “conditions” surrounding free shipping. What’s the minimum purchase required for shipping to be free? Which items are included (or excluded)?

Currently, it seems like retailers will be promoting free shipping with conditions most often but a handful are planning some “no minimum” promotions on key spending days.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Global · Global Logistics · Logistics · All Topics
Latest Whitepaper
Maximizing Your Sales Team’s Effectiveness
Companies need to examine how to restructure their sales team to respond to different customers and subsequent buying behaviors and preferences.
Download Today!
From the November 2017 Logistics Management Magazine Issue
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships into true, collaborative partnerships—and greatly strengthened its logistics and supply chain operations in the process.
34th Annual Quest for Quality Awards: 2017 Awards Dinner
Trucking Regulations: Washington U-Turns; States put hammer down
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Make Your Products Smarter in the Supply Chain with the IoT
This webinar explores how temperature-sensing smart labels and inexpensive NFC tags are being used to extend product safety and efficiency beyond the shipping dock while also building a communication bridge to your customers.
Register Today!
EDITORS' PICKS
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...

26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...