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Not offering free shipping has been shown to be a leading cause of online shopping cart abandonment rates, but some online sellers are eliminating the perk or making it harder to get to lessen the brunt of product price hikes.
A Wall Street Journal article noted that to offset the tariff impact, subscription educational toy seller Lovevery eliminated free shipping on all orders, handbag maker Modern Picnic raised the threshold on order size to qualify for free shipping, and orthopedic shoemaker KURU Footwear shifted to reserve free shipping only for loyalty program members.
Anisa Kumar, CEO of retail-technology provider Narvar, told the WSJ that retailers “don’t know how the backlash is going to be” if the tariff impact is largely reflected in higher sticker prices. Instead, companies are “trying to tighten up on lines like transportation and returns and things that are not as front-facing to consumers as that first shopping price,” she said.
Retailers in recent years have already been eliminating free shipping on orders or raising the threshold to qualify for free shipping to combat higher delivery costs. The average minimum-order threshold for retailers to offer free shipping jumped to $103 this year from $82 in 2023, according to Narvar.
However, free shipping has become an expectation for many consumers since Amazon introduced its Prime membership with two-day shipping in 2005.
A survey of about 1,000 U.S. consumers last year from Digital Commerce 360 and Bizrate Insights data found more than eight in 10 cited free shipping (81.3%) as their top priority when it comes to delivering their orders. More than a third (35.8%) said reasonable shipping fees are most important to them — if they aren’t getting free shipping.
A McKinsey survey of more than 1,000 U.S. consumers earlier this year found more than 80% saying they will still buy an item when delivery takes four to seven days, as long as that delivery is free.
Free shipping options also give shoppers confidence in making an online purchase without the in-store ability to try or touch a product. Retailers still offering free shipping with no minimum order size and no membership include Nordstrom, Sunglass Hut, Apple, Coach, Tory Burch, Lululemon, Zappos, Amoeba Music, Warby Parker, and Blue Nile.
According to a survey from ESW of about 1,000 U.S. consumers taken in late 2024, 60% will not absorb more than a 10% increase in pricing due to tariffs. Yet when asked what they like retailers to offer in exchange for higher prices due to tariffs, the top answer was free shipping, cited by 52%