Based on this article from PYMNTS: https://www.pymnts.com/news/ecommerce/2025/66-of-consumers-look-for-free-shipping-when-online-shopping/
What stood out to me more in this report were these findings: “48% of consumers prefer online marketplaces for this very reason”, and among those who made most of their recent purchases on marketplaces, only “18% said better prices are the key factor”.
While pricing is important, customer perception matters just as much. A $30 order with free shipping may often feel like a better deal than a $25 order with $5 shipping, even though the total cost is identical.
Free shipping is never truly “free” for businesses, especially smaller ones. Marketplaces with logistics programs pass cost savings onto third-party sellers, making FBA/WFS often cheaper than other 3P logistics providers for small volumes.
Finding the right balance is key, and a well-designed shipping policy can really impact a business’s bottom line. Offering free shipping beyond a certain order value threshold is a common strategy, but how do you set the right number? It depends on AOV, product size and weight, margins, and other factors.
DTC brands should explore all of their options and experiment before making unconditional free shipping the default policy. Just because customers say they want free shipping doesn’t mean they’ll never buy from brands that don’t offer it. The key is to make sure they perceive enough value in the product or service, at least enough that they’d still choose it over a competitor with a more generous shipping policy.
