Free shipping seems to become a discontinued model
Free shipping seems to become a discontinued model
Monday, July 25, 2022 Smartstore

Free shipping seems to become a discontinued model

Recently, 30% of the top 100 online retailers in Germany have changed their shipping terms. The free shipping we've all become accustomed to is becoming increasingly rare, and companies are now even requiring a minimum order value in addition to paid shipping.

After Zara announced a few weeks ago that online orders could no longer be returned for free and Zalando imposed a Minimum order value of 24.95 EUR for free shipping introduced, confirmed a development that the online stores to the Returns screw turn. This is also confirmed by shipping specialist ParcelLab.

More retailers are saying goodbye to free shipping

Before the outbreak of the Ukraine war, 31 of the top 100 retailers typically delivered for free, but by June 2022 that number had dropped to 11. The majority of retailers that switched from free to paid shipping opted for a soft entry via a minimum order value, above which shipping remains free. Only about one in five made a radical cut and will charge a flat shipping rate for all orders in the future, regardless of order value.

When it comes to thresholds for free shipping, the picture is mixed. For example, 17 of the 47 retailers with minimum order values waive shipping costs for an order value of less than 30 euros, while 16 raise the bar and only offer free shipping for an order value of at least 50 euros. In some cases, the values here were even well over 100 euros.

On the other hand, customers who do not reach a retailer's minimum order value generally pay lower shipping costs at these retailers than at retailers that generally charge for postage and packaging. For almost two-thirds of the latter, the cost is between four and six euros, while 75 percent of retailers with a minimum order value stay well below four to five euros.

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