Week of 3/4/26
There’s an assumption in eCommerce that you have to offer free shipping. We don’t see it that way. Free shipping isn’t a requirement. It’s a strategic decision.
If you’re in a highly competitive category where multiple sellers carry the same product, you may need it to stay in the game. In other cases, especially when what you sell isn’t ubiquitous, charging for shipping can make sense. You can also use a minimum order threshold, but that number shouldn’t be arbitrary. It should be based on your margins, shipping costs, and average order value.
Understanding the free shipping equation requires looking at your data, your competition, and your unit-level economics. Otherwise, you’re not making a strategic decision. You’re just giving margin away. ●