The Bill For Free Shipping Has Finally Arrived

Retailers are pulling back on fast, free shipping as parcel costs rise. The bill for “free” delivery is finally coming due for retailers, carriers, and consumers.

Mar 16, 2026

In case you missed it last week amid all the headlines about the war with Iran and how it’s impacting supply chains — as well as the ongoing drama with tariffs — there was an article in the Wall Street Journal that caught my attention. Its title: “We Got Hooked on Fast, Free Shipping. Now Retailers Are Taking It Away.”

“After years of priming us to expect speedy deliveries, the ever-growing e-commerce economy is weaning us off them — and no one seems to mind,” Esther Fung writes. Here are some additional excerpts from the article:

For years, online retailers were willing to eat the cost of fast shipping in the battle for customers. But shipping costs have increased sharply — especially for home deliveries — and offering near-instant gratification for online orders is no longer a sound business strategy for many.
[Parcel shipping costs] have climbed dramatically in recent years. Since 2020, the two leading package carriers [UPS and FedEx] have raised their base rates by 4.9% to 6.9% annually. In addition, they have increased their ancillary fees, including fuel surcharges, address-correction fees and an added charge for delivering to residences. They’ve also imposed stricter rules on package sizes, so that dimensions get rounded up.

It’s about time.

The Role of 3PLs in Shipper Decision-Making

In a previous Indago survey, we explored how supply chain leaders are strengthening decision-making amid ongoing uncertainty. In this follow-up survey, we turned the lens outward to examine the role Third-Party Logistics providers (3PLs) play in supporting — or limiting — better decision-making within shipper organizations.

Download Report

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