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How Retailers Deliver on ‘Free Shipping’ Without Losing Money

Free shipping isn’t really free, but it’s still one of the most powerful tools online retailers have to win customers. What’s Related According to the 2025 E-Commerce Trends Report: Business Edit from DHL eCommerce, 96% of retailers say their logistics offering directly impacts sales, and 86% believe “free” delivery and returns improve performance. For most, that […]

Free shipping isn’t really free, but it’s still one of the most powerful tools online retailers have to win customers.

What’s Related

According to the 2025 E-Commerce Trends Report: Business Edit from DHL eCommerce, 96% of retailers say their logistics offering directly impacts sales, and 86% believe “free” delivery and returns improve performance.

For most, that promise is carefully managed. The report found that 42% of retailers build shipping costs directly into product prices, 25% charge at checkout, and 20% offer a mix of free and paid delivery based on order value. Another 14% now offer annual or monthly delivery subscriptions that bundle faster or unlimited shipping.

Retailers are also spreading their risk and improving speed by working with multiple partners. 43% partner with three or more logistics providers for delivery and returns, and among large businesses, that number jumps to 57%. Nearly 9 in 10 retailers regularly review their delivery options, and 80% say switching providers is easy if service slips.

“Free delivery and returns continue to be a tactic retailers use to get shoppers to click ‘buy now,’” the report notes. “In the competitive e-commerce market, your logistics offering can be the reason a shopper completes their purchase or clicks away.”

To meet rising expectations, many are offering faster and more flexible options. 65% provide tracked domestic delivery, and 52% offer tracked next-day delivery. Returns are also getting easier: 55% of retailers’ customers drop off items at parcel shops, and 52% use parcel lockers.

“It’s not just about trends; it’s about transformation and the heartbeat of local and global e-commerce,” DHL CEO Pablo Ciano wrote in the report’s introduction. “Businesses are scaling faster, selling smarter, and prioritizing sustainability like never before.”

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