Saks Fifth Avenue is the latest retailer to modify its shipping policy to meet the demands of cost-conscious online shoppers. The retailer said it has expanded its free shipping to all orders regardless of purchase total.
Saks had previously offered free standard shipping only to Saks credit card holders who made an online purchase using the card. The company's previous shipping costs started at $5 and would increase depending on the total value of the order placed.
Saks sent out an email to subscribers introducing the new promotion as, "Free shipping, every day, every order." The company also shared the news via its social media channels.
Shipping is becoming the Achilles heel for retailers who struggle to keep customers happy as e-commerce business skyrockets, while thinking of the most cost-effective strategies to transport products to a customer's doorstep. Cost-savings is going to become even more critical for retailers, since up until now, the consumer has been conditioned to expect free shipping.
"Over the last three years, our data shows that free shipping with and without a threshold is as strong as ever throughout the entire course of the year. Consumers expect to have free shipping and they expect retailers to subsidize free shipping," said Sucharita Mulpuru, vice president and principal analyst at Forrester Research.
In order to help customers get goods faster while keeping costs low, many retailers have now begun to offer more ship-to-store and click-and-collect items, where shoppers can order online and pick up in-store.
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