Tariffs impacting customers' ship costs

Retailers are scaling back free shipping to help absorb rising costs from newly imposed tariffs—10% on most countries and much more on Chinese imports—alongside general increases in shipping rates. 

Small businesses are most impacted, and making moves to protect their bottom line: either increasing (even doubling) their free-shipping thresholds, and/or restricting free shipping to their loyalty programs, and charging a shipping fee that recoups at least most of their costs.

The average free shipping threshold is now $103, up 25% from 2023.

Small and medium sized businesses have to ensure each order stays profitable, but free shipping cuts are already hurting conversion rates and causing cart abandonment. Brands must consider other ways to reduce their costs (freight, shipping, production) and think about how to make their product value and checkout experience outweigh the increased costs.