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Online Retailers Raise Costs Of Free Shipping

October 22, 2014: 12:00 AM EST
Retailers, such as Amazon.com Inc., Best Buy Co., and Gap Inc., are raising the amount that online shoppers need to buy to be able to avail themselves of free shipping. July 2014 data from market researcher StellaService Inc. revealed a customer has to spend an average of $82 on products to qualify for free shipping, up from $76 year on year. For example, Amazon raised its free-shipping threshold from $25 to $35 in 2013, and increased the membership fee for its Prime delivery service in March 2014. The trend highlights the efforts of retailers and shipping firms to cover their shipping costs; however, a small group of retailers, which includes Amazon's Zappos, Nordstrom Co., and L.L. Bean, still offer no-minimum free shipping.
Laura Stevens et al, "Free Shipping Is Going to Cost You More", The Wall Street Journal, October 22, 2014, © Dow Jones & Company, Inc.
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