{"id":11773,"date":"2022-07-27T18:43:10","date_gmt":"2022-07-27T18:43:10","guid":{"rendered":"https:\/\/www.smithcorona.com\/blog\/?p=11773"},"modified":"2023-12-19T16:40:40","modified_gmt":"2023-12-19T16:40:40","slug":"free-shipping-costs-retailers-money","status":"publish","type":"post","link":"https:\/\/www.smithcorona.com\/blog\/free-shipping-costs-retailers-money\/","title":{"rendered":"The Myth of Free Shipping: How It Really Costs Retailers Money"},"content":{"rendered":"<p><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-1\"><p><span style=\"font-weight: 400;\">We love free shipping.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s practically synonymous with online retail nowadays.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And shoppers don\u2019t just desire the option at checkout; they expect it.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.junglescout.com\/wp-content\/uploads\/2021\/06\/Jungle-Scout-Consumer-Trends-Report-Q2-2021-3.pdf\" target=\"_blank\" rel=\"nofollow noopener\"><b>66%<\/b><span style=\"font-weight: 400;\"> want free shipping<\/span><\/a><span style=\"font-weight: 400;\"> on all orders while <\/span><b>88%<\/b><span style=\"font-weight: 400;\"> expect it when their order exceeds a certain amount.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At this point, free shipping isn\u2019t just a nice perk &#8211; it\u2019s essential for retailers to provide.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So it makes sense that e-commerce businesses offer it. But unfortunately, <\/span><b>free shipping isn\u2019t free<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<\/div>\n            <div class=\"smith-corona-featured-image\">\n\n                <img src=\"https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/09\/the-myth-of-free-shipping-hero-splash.png\" alt=\"\" width=\"760\" height=\"460\" \/>\n\n            <\/div>\n        <div class=\"fusion-text fusion-text-2\"><p><span style=\"font-weight: 400;\">There is a cost, and it\u2019s always paid by someone.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While shipping costs can be hidden from consumers, businesses have to consider how this popular feature affects their bottom line.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because it does.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">No matter the size of your retail business, you\u2019re probably losing some amount of money on free shipping.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And if it isn\u2019t implemented correctly, you could end up losing more.<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-0{width:100% !important;order : 0;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-2 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-1{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-1{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-1 fusion-sep-none fusion-title-text fusion-title-size-two\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h2 class=\"title-heading-left\" style=\"margin:0;\"><b>Free Shipping Will Cost You<\/b><\/h2><\/div><div class=\"fusion-text fusion-text-3\"><p><span style=\"font-weight: 400;\">Shipping is an incredibly vital role in the online shopping experience. Without it, there is no ecommerce.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s so important that 61% of shoppers say they are \u201csomewhat likely\u201d to cancel their order if free shipping isn\u2019t offered, <\/span><a href=\"https:\/\/www.invespcro.com\/blog\/free-shipping\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">according to Invesp<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because free shipping affects consumer shopping habits so much, incorporating it has become practically standard.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re a new e-commerce business, what better way to attract more customers? Using free shipping should sell more goods and increase profits, right?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Well, not exactly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The reality is, money for free shipping has to come from somewhere. And if the customer doesn\u2019t pay for it, that leaves the retailer footing the bill.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Retailers need to carefully consider how free shipping will impact their bottom line. Because this offer comes at a cost.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Free shipping is only profitable if orders are priced high enough to cover the cost of shipping.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And if retailers don\u2019t have a way to offset the amount of shipping, they\u2019ll be left absorbing the costs and paying for shipping out of<\/span><b> their own margins<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-1{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-1 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-1{width:100% !important;order : 0;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-1{width:100% !important;order : 0;}.fusion-builder-column-1 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-2{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-3 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-2 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-2{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-2{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-2 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\"><b>Factor in Logistics<\/b><\/h3><\/div><div class=\"fusion-text fusion-text-4\"><p><span style=\"font-weight: 400;\">There is one area that free shipping wreaks havoc on: logistics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Increased logistics expenses create chaos for retailers trying to make a profit.\u00a0<\/span><span style=\"font-weight: 400;\">Consider how often shipping rates change. This is especially true given<\/span><a href=\"https:\/\/www.smithcorona.com\/label-supply-chain-crisis.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> supply chain issues<\/span><\/a><span style=\"font-weight: 400;\"> the last 2 years.<\/span><\/p>\n<p><a href=\"https:\/\/www.smithcorona.com\/blog\/2021-supply-chain-chaos\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Global freight container prices<\/span><\/a><span style=\"font-weight: 400;\"> rose to record-breaking numbers. <\/span><a href=\"https:\/\/www.smithcorona.com\/blog\/threat-of-us-paper-shortage\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">A Finnish strike<\/span><\/a><span style=\"font-weight: 400;\"> decimated the production of <\/span><a href=\"https:\/\/www.smithcorona.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">shipping labels<\/span><\/a><span style=\"font-weight: 400;\">. A boom in e-commerce led to <\/span><a href=\"https:\/\/www.smithcorona.com\/blog\/how-bracketing-changed-retail-returns\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">massive online orders and returns<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All of these events factor into logistics and shipping costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To offset this, retailers who ship large volumes of packages will negotiate a lower rate with carriers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These <\/span><a href=\"https:\/\/sporkmarketing.com\/4929\/what-to-know-about-negotiating-shipping-rates\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">volume-based discounts<\/span><\/a><span style=\"font-weight: 400;\"> mean the more you ship, the better the discount rate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think about it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a retailer, you are giving a carrier substantial business. As your company grows, so does the amount of packages needing to be shipped. More business means the carrier is then more willing to give you a better shipping rate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But as costs soar, carriers will have to increase their rates with retailers. Thus increasing money spent on shipping.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To not risk losing out on free shipping, retailers will have to find ways to include it without losing money.\u00a0 <\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-2{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-2 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-3{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-4 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-3 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-3{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-3{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-3 fusion-sep-none fusion-title-text fusion-title-size-two\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h2 class=\"title-heading-left\" style=\"margin:0;\"><strong><b>How Retailers Offset Charges for Free Shipping<\/b><\/strong><\/h2><\/div><div ><span class=\" fusion-imageframe imageframe-none imageframe-1 hover-type-none\"><img width=\"800\" height=\"421\" src=\"https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/5229-800x421.jpg\" alt class=\"img-responsive wp-image-11799\" srcset=\"https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/5229-200x105.jpg 200w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/5229-400x211.jpg 400w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/5229-600x316.jpg 600w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/5229-800x421.jpg 800w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/5229-1200x632.jpg 1200w\" sizes=\"(max-width: 1064px) 100vw, (max-width: 640px) 100vw, 1200px\" \/><\/span><\/div><div class=\"fusion-text fusion-text-5\"><p><span style=\"font-weight: 400;\">As a retailer, losing money isn\u2019t something you want to happen, ever.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So if you want to lessen the risk of lost revenue with free shipping, you\u2019ll need to figure out how to cover the costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are tactics that can help.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But deciding which ones to choose will depend on the size of your company and what works best for your margins.<\/span><\/p>\n<p><b>Increase Product Prices &#8211; <\/b><span style=\"font-weight: 400;\">This option passes the cost of free shipping onto the customer. The cost of shipping is baked into the product price, so the customer pays for not only the item they purchase but also the shipping. To do this, you\u2019ll need to calculate the necessary markup to cover the cost. And don\u2019t worry, this isn\u2019t some well kept secret hidden under lock and key. Sites like Shipbob have written articles on <\/span><a href=\"https:\/\/www.shipbob.com\/blog\/how-to-offer-free-shipping-ecommerce-store\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">how to offer free shipping as an online store<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><b>Minimum Spending Threshold (MST) &#8211; <\/b><span style=\"font-weight: 400;\">Implementing a minimum spending threshold (MST) incentivizes customers to pay more by still building the shipping cost into the product price. This method guarantees customers will spend a specific dollar amount on orders for free shipping availability. You will have to calculate the right number to offset your business\u2019 logistics costs by increasing the average order value (AOV).<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-3{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-3 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-4{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-5 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-4 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-4{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-4{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-4 fusion-sep-none fusion-title-text fusion-title-size-two\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h2 class=\"title-heading-left\" style=\"margin:0;\"><b>Who is Free Shipping Sustainable For?<\/b><\/h2><\/div><div class=\"fusion-text fusion-text-6\"><p><span style=\"font-weight: 400;\">Sometimes free shipping isn\u2019t the best option for your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Maybe you don\u2019t have the margins to include it yet or ended up paying more of the costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Or you\u2019re a brand selling large, heavy goods, which makes offering free shipping even harder.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, in today\u2019s e-commerce world, free shipping has become the norm. And necessary for any business to compete.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Online retailers add free shipping to their business simply because <\/span><b>they have to.<\/b><span style=\"font-weight: 400;\">\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But it&#8217;s not a suitable option for every business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So who does free shipping actually help in the long run?<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-4{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-4 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-4{width:100% !important;order : 0;}.fusion-builder-column-4 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-4{width:100% !important;order : 0;}.fusion-builder-column-4 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-5{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-6 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-5 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-5{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-5{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-5 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\"><b>Big Corporations<\/b><\/h3><\/div><div class=\"fusion-text fusion-text-7\"><p><span style=\"font-weight: 400;\">These are the <strong>Amazons<\/strong>, <strong>Walmarts<\/strong>, and <strong>Targets<\/strong> of the world.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So it makes sense that free shipping works best for them. But how do they implement free shipping without losing out?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Economies of scale.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Huge name brands generate mass amounts of sales and revenue.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore they have the means to scale free shipping in a way that smaller, e-commerce companies can\u2019t.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, because they are shipping on such a massive scope, they lose a substantial amount of money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s look at Amazon as an example.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Amazon\u2019s shipping costs were <\/span><a href=\"https:\/\/www.statista.com\/statistics\/806498\/amazon-shipping-costs\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">$76.7 billion in 2021<\/span><\/a><span style=\"font-weight: 400;\">. This included:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Sortation<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Delivery centers<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Transportation costs<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">That number is gargantuan. But Amazon still, not only operates, but generates money by offsetting costs through their growing revenue.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.visualcapitalist.com\/visualizing-amazons-rising-shipping-costs\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">Sales at Amazon soared<\/span><\/a><span style=\"font-weight: 400;\"> from $280 billion in 2019 to $469 billion in 2021. And that\u2019s before and during the pandemic!\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To give free shipping perks, some of these companies have customers sign up for exclusive memberships. This is another example of free shipping through a minimum spending threshold.<\/span><\/p>\n<\/div><div class=\"fusion-text fusion-text-8\"><p><span style=\"font-weight: 400;\">Again, Amazon leads the charge.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Their Prime members pay a subscription fee to reap the benefits of the program, including the 2-day, free shipping.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For members who order less, they lose money in the long run. For members who frequently order, Prime is worth the subscription fee.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Either way, Amazon still wins out.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, Prime members will often spend more when shopping, which offsets the losses Amazon incurs from all the shipping costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Prime isn\u2019t Amazon\u2019s only strategy to pay shipping fees.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Their FBA program also helps compensate for free shipping. While sellers have their own stores, they will still pay fees for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Handling<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Packing<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Inventory<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Returns<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">And as you can imagine, free shipping moves <\/span><b>a lot<\/b><span style=\"font-weight: 400;\"> of products. So over time, seller\u2019s costs increase to absorb the rise in sales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Amazon really sustains their business by making both their consumers and merchants foot the bill for shipping.<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-5{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-5 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-5{width:100% !important;order : 0;}.fusion-builder-column-5 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-6{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-7 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-6 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-6{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-6{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-6 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\"><b>Small E-Commerce Businesses<\/b><\/h3><\/div><div ><span class=\" fusion-imageframe imageframe-none imageframe-2 hover-type-none\"><img width=\"800\" height=\"531\" title=\"Baymard Graph\" src=\"https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/Baymard-Graph-800x531.jpg\" alt class=\"img-responsive wp-image-11791\" srcset=\"https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/Baymard-Graph-200x133.jpg 200w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/Baymard-Graph-400x266.jpg 400w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/Baymard-Graph-600x398.jpg 600w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/Baymard-Graph-800x531.jpg 800w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/07\/Baymard-Graph-1200x797.jpg 1200w\" sizes=\"(max-width: 1064px) 100vw, (max-width: 640px) 100vw, 1200px\" \/><\/span><\/div><div class=\"fusion-separator fusion-full-width-sep\" style=\"align-self: center;margin-left: auto;margin-right: auto;margin-top:10px;margin-bottom:10px;width:100%;\"><\/div><div class=\"fusion-text fusion-text-9\"><p><span style=\"font-weight: 400;\">Unfortunately, smaller online businesses and 3rd party sellers don\u2019t have the luxury of scale to compete.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For them, offering free shipping to customers could mean hemorrhaging money. Remember, smaller retailers don\u2019t have the save revenue as bigger companies to cushion the blow.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yes, they\u2019ll provide free shipping to compete, but it\u2019s not sustainable. Free shipping looks enticing on a webpage and can drive more customers to visit and shop.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some small businesses aren\u2019t able to offer free shipping at all and still end up suffering.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Take the example of Ann Miceli, an Etsy seller who discussed her struggles with free shipping in a <\/span><a href=\"https:\/\/www.theatlantic.com\/magazine\/archive\/2020\/01\/the-myth-of-free-shipping\/603031\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">2020 Atlantic publication<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ann lost 40% of her revenue in just a few months when Etsy&#8217;s new algorithm gave priority to sellers who guaranteed free shipping in 2019.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because buyer expectations had changed, Miceli was advised to raise her prices to cover shipping fees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">She realized her competitors were \u201csimply eating the costs\u201d associated with free shipping, <\/span><span style=\"font-weight: 400;\">and she couldn&#8217;t afford to.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is the story for many 3rd party sellers. They fear raising the cost of products to compensate shipping fees will dissatisfy customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ecommerce platforms, like Shopify, try to stem the cost of shipping by offering perks to their merchants. Rates through UPS or FedEx can be discounted by amassing large quantities to ship.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, small businesses are in the hole because of the pandemic. Brick and mortar storefronts closed during lockdowns, <\/span><a href=\"https:\/\/www.nextinsurance.com\/blog\/survey-small-business-inflation-labor\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">34% permanently<\/span><\/a><span style=\"font-weight: 400;\"> as of April 2021.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now rising inflation is making the situation worse.<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-6{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-6 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-6{width:100% !important;order : 0;}.fusion-builder-column-6 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-6{width:100% !important;order : 0;}.fusion-builder-column-6 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-7{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-8 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-7 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-7{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-7{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-7 fusion-sep-none fusion-title-text fusion-title-size-two\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h2 class=\"title-heading-left\" style=\"margin:0;\"><b>A Rise in Inflation Affecting Shipping<\/b><\/h2><\/div><div class=\"fusion-text fusion-text-10\"><p><span style=\"font-weight: 400;\">We know shipping isn\u2019t free. Now let\u2019s add inflation into the equation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Inflation has skyrocketed in the last several years. Consumer prices are up <\/span><a href=\"https:\/\/www.cbsnews.com\/news\/inflation-cpi-consumer-price-index-may-2022\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">8.6% between May 2021 and 2022<\/span><\/a><span style=\"font-weight: 400;\">. That\u2019s the largest 12 month increase since December 1981!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thanks in part to pandemic shutdowns, supply chain issues, and more, fear of a recession is on the horizon.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Why does this matter with free shipping?<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If costs are rising, the cost of shipping items also rises.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The cost of shipping 20-foot and 40-foot containers sharply increased during Covid. While prices have gone down from peak pandemic times, <\/span><a href=\"https:\/\/www.statista.com\/statistics\/1250636\/global-container-freight-index\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">freight rates<\/span><\/a><span style=\"font-weight: 400;\"> are still well above pre-pandemic prices:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">March 2020 &#8211; $1,525<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">September 2021 &#8211; $10,361<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">June 2022 &#8211; $7,066<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Clearly repercussions are still lasting. Some experts estimate <\/span><a href=\"https:\/\/www.reuters.com\/markets\/commodities\/old-is-gold-sky-high-cost-ageing-ships-sounds-inflation-sos-2022-06-21\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">high freight rates on consumer prices will continue<\/span><\/a><span style=\"font-weight: 400;\"> well into 2023.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Weight and size also factor into shipping rates. The larger and heavier a product is to ship, the more it costs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So free shipping on a new desk will eat at margins much more than shipping a t-shirt.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is, if the retailer even offers it for those items. Furniture stores, like West Elm, don\u2019t offer free shipping at all, only flat and standard rates.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So if you\u2019re willing to offer fast and free shipping, be prepared to dump out your wallet (that is, if you haven\u2019t already). <\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-7{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-7 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-7{width:100% !important;order : 0;}.fusion-builder-column-7 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-7{width:100% !important;order : 0;}.fusion-builder-column-7 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-8{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-9 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-8 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-8{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-8{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-8 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\"><b>Gas Prices Making Shipping Worse<\/b><\/h3><\/div><div class=\"fusion-text fusion-text-11\"><p><span style=\"font-weight: 400;\">Gas prices have exploded over the last year. Thanks in large part to the ongoing tug-of-war of supply and demand.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A lower supply of crude oil combined with increased demand has raised prices.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Those packages shipping across the country for \u201cfree\u201d are now costing an arm and a leg.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Currently, the <\/span><a href=\"https:\/\/gasprices.aaa.com\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">national average is sitting at $4.30<\/span><\/a><span style=\"font-weight: 400;\"> (as of mid-July 2022). A month prior it was over $5, and in some parts of the country, well over $6 per gallon.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When the cost of fuel goes up, so do freight rates, making shipping and logistics a harder affair.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To combat costs, trucks and ocean freights will try to offset rising costs with surcharges. This especially affects shipping time or temperature sensitive products.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not to mention any delays will become a huge problem for retailers that promote fast and free shipping. Slow shipping means unhappy customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fluctuating costs will always affect the movement of goods and, ultimately, product prices.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Retailers considering free shipping or who already offer it must always be prepared to account for these instabilities. <\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-8{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-8 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-8{width:100% !important;order : 0;}.fusion-builder-column-8 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-8{width:100% !important;order : 0;}.fusion-builder-column-8 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-9{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-10 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-9 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-9{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-9{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-9 fusion-sep-none fusion-title-text fusion-title-size-two\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h2 class=\"title-heading-left\" style=\"margin:0;\"><strong>Wrapping Things Up<\/strong><\/h2><\/div><div class=\"fusion-text fusion-text-12\"><p><span style=\"font-weight: 400;\">There\u2019s no going back now that free shipping is an option.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As e-commerce continues to boom YoY, it will incorporate more as part of the buying process.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But retailers, both big and small, have to consider how to offer free shipping without losing more money in the process.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And with inflation on the rise, increased costs will only continue to affect their bottom lines.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That leaves us with a burning question: <strong>how will retailers be able to provide free shipping?<\/strong><\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-9{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-9 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-9{width:100% !important;order : 0;}.fusion-builder-column-9 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-9{width:100% !important;order : 0;}.fusion-builder-column-9 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-10{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consumers love free shipping and almost expect it with their online purchases nowadays. But believe it or not, free shipping isn&#8217;t really free. Someone has to pay for it, and more often than not, it&#8217;s the retailer. If you don&#8217;t implement free shipping the right way, it&#8217;ll end up costing your ecommerce business big time.<\/p>\n","protected":false},"author":13,"featured_media":12830,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[78],"tags":[],"acf":{"theme_color":"","estimated_reading_time":8,"include_in_most_popular_sidebar":false,"hero_splash_image":12828,"grid_listing_thumbnail":12829,"sidebar_most_popular_thumbnail":12831},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Myth of Free Shipping: How It Really Costs Retailers Money - Barcode Blog<\/title>\n<meta name=\"description\" content=\"Believe it or not, free shipping isn&#039;t free. And if you don&#039;t implement it right, it&#039;s costing your ecommerce business money.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smithcorona.com\/blog\/free-shipping-costs-retailers-money\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Myth of Free Shipping: How It Really Costs Retailers Money - Barcode Blog\" \/>\n<meta property=\"og:description\" content=\"Believe it or not, free shipping isn&#039;t free. 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