In an inflationary environment where transport costs continue to soar, the issue of free delivery is threatening retailers’ profitability. After charging customers for goods returns, they are no longer hesitating to raise the minimum order threshold to preserve margins.
In the U.S.A., where e-commerce accounted for 15.1% of retail in Q1 2023 via US$272.6 billion in sales, the party is over when it comes to free deliveries and returns, which have damaged the P&L of many retailers. According...