The U.S. e-commerce industry is following Amazon in changing its approach to free shipping.
The change comes as slowing online sales and rising shipping costs threaten e-commerce profit margins.
Amazon initially drove the e-commerce industry to normalize free shipping as a way of retaining customer loyalty.
- Almost three-quarters of the top 1,000 U.S. retailers now offer free shipping on at least some orders, according to data provided by industry research firm Digital Commerce 360.
- Amazon is now looking for ways to prevent free shipping from eroding its profit margin.
- The company is leading other e-commerce firms in raising minimum purchase requirements for free shipping and imposing costs for faster shipping options.
