Free delivery comes at high cost for retailers

Free delivery is becoming the norm for many retailers. While this may be good news for consumers, retailers often struggle to make a profit from online orders. Amazon reported last week that it saved customers $2 billion in shipping fees over the holidays alone. But at what cost to the retailer? According to Forrester Researcher Sucharita Mulpuru, the e-commerce giant loses between $1 and $2 billion annually from U.S. Prime shipping. Story

Suggested Articles

Costco changes up its menu items, and Alibaba and Guess partner for a physical store.

Janey Whiteside, Walmart's new chief customer officer, is well acquainted with the importance of customer service in modern retail.

Whole Foods will offer deals on Amazon's Prime Day, and tariffs against China are causing pricing hikes.