Rising costs pushes Amazon, other retailers to revisit 'free' shipping

Rising costs pushes Amazon, other retailers to revisit 'free' shipping



It seems that rising shipping costs are forcing retailers, including Amazon, to reconsider the "free shipping" model that has been a popular marketing tool for e-commerce companies. Retailers are adding fees for faster service, increasing minimum purchase requirements, and making other changes that shift more costs to consumers. Many retailers are looking to reduce shipping costs and prioritize speed, but rising product prices and shipping costs are making it difficult to sustain the free shipping model, especially as the prospect of a recession looms. Despite this, retailers are drawing the line at losing money on a service that consumers have come to expect. Amazon is one such company that is modifying its approach, raising the annual Prime subscription price and offering "free" same-day shipping for Prime members in certain US cities only on orders of at least $25. Some customers are questioning the value of their Prime subscriptions due to late package deliveries, particularly during the holidays. Retailers are split on how to address this issue, with some raising thresholds for fast shipping, while others are dropping free shipping altogether or taking product prices up again.




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