From the Wall Street Journal:
There’s no such thing as free shipping, but keeping that in mind is proving tough in e-commerce. Online shoppers increasingly expect not to pay to have their orders delivered to their front doors, leaving retailers with a stark choice: eat the costs or lose the customers. Most are choosing the former, but most are struggling to do that without sacrificing profit margins, the WSJ Logistics Report’s Brian Baskin writes. Making matters worse: savvy shoppers often top off orders with cheap add-ons to get over the free-delivery threshold, leading to small items shipping in large boxes and other costly shipping practices. Analysts say delivery logistics is a critical fault line for e-commerce, and that retailers that can figure out how to convince customers to spend more and then ship the purchases efficiently will be the big winners online.