THE WHAT? US retailers are raising the minimum spend online shoppers need to meet in order to qualify for free delivery, according to a report published by the Wall Street Journal.
THE DETAILS Macy’s, Saks Fifth Avenue, Neiman Marcus and Abercrombie & Fitch have all upped the threshold while Amazon has hiked the cost of its Prime membership, which includes free shipping. The average minimum spend has risen from US$52 in 2019 to US$64 in 2023, data from Narvar reveals, per The Wall Street Journal.
THE WHY? The Wall Street Journal suggests that retailers are readjusting their logistics strategies and looking to increase profitability post pandemic. Shipping costs account for some 10 percent of an order and counting, according to data from Shippo.