The Truth About ‘Free’ Shipping: Who Really Pays the Price?

For years, free shipping was a bonus—a perk that retailers used to entice customers. Now, it’s a non-negotiable. According to a new FedEx report, more than 80% of consumers prioritize free shipping, and 76% say it influences where they shop. But while customers expect it, free shipping is anything but free. Someone is footing the bill. The question is: who?

Retailers Are Absorbing the Cost—But It’s Not Sustainable

For big players like Amazon, Walmart, and Target, offering free shipping is part of their dominance strategy. They have the scale, fulfillment networks, and membership programs to subsidize shipping costs. But for small…