Nearly three out of four of Top 1000 retailers offer free shipping on at least some orders. But there are significant variations in strategy on shipping fees depending on how a retailer sells and, even more, based on what it sells.
Free shipping policies changed little in 2021 compared to 2020. The percentage of top retailers offering free shipping on at least some purchases remained steady at 74.6%. The percentage requiring a minimum purchase to avoid shipping fees ticked up slightly to 45.9% from 44.3%, but the median purchase required to get free shipping held steady at $60.
Just over a quarter of Top 1000 retailers offer return shipping: 27.4% in 2021 versus 28.5% in 2020.
There remain significant differences in free shipping policies based on the type of merchant. Consumer brand manufacturers are the most likely to waive shipping fees, at 80.2%, down slightly from 81.5% a year earlier. Brands also are the most likely to offer free return shipping, at 38.3%.
There is an even wider disparity in free shipping policies based on the type of merchandise a retailer sells. In general, Top 1000 retailers are more likely to waive shipping fees if their products are lightweight and thus cost relatively little to ship, or are expensive, which often means there is ample profit margin to cover shipping costs.
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