What: Online retailers are scrambling to keep free delivery from draining profits as costs climb and e-commerce contracts.

Why it is important: Experts state that the days of free delivery are numbered, as retailers look to lower shipping costs with retail margins shrinking.

Retailers like Amazon, Zara, Abercrombie & Fitch, and more are drawing the line at losing money on a service customers have come to expect. This has resulted in shipping cost reduction goals of up to 25%.

Many are adding fees for faster service, raising minimum purchase requirements, and making other changes that will shift more costs to consumers.

As a dominator in e-commerce, Amazon forced free and fast shipping in the industry and its latest moves are indicative of what’s to come. The online retailer hiked its annual Prime subscription, in addition to increasing purchase requirements to and charging for orders under the threshold.

Nearly three quarters of the top 1,000 US retailers offered free shipping on at least some orders, with 45% requiring a minimum purchase for that perk according to survey results from an industry research firm in August 2022.

Some retailers are dropping free shipping altogether or increasing product prices as they can’t compete with Amazon, meanwhile Amazon customers are questioning the benefits of Prime if they won’t receive free shipping.

Amazon, other retailers revamp ‘free’ shipping as costs soar