Is Free Shipping Here to Stay?

Consumers’ hunger for free shipping has turned ravenous in the form of free-and-fast shipping, says Bill Richardson, president and chief operating officer of intimate apparel merchant Bare Necessities.

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Is free-and-fast here to stay or will this bubble burst? And what types of direct-to-consumer businesses will be able to sustain free-and-fast?

Most small to mid-sized companies don’t have the negotiation power with the carriers and don’t have the war chest to either sustain growing shipping losses or open multiple distribution centers, Richardson says.

“What these companies need to do is to further differentiate in ways that are specifically meaningful to their customers. This will keep their customers loyal regardless of the speed and cost of shipping.”

If you want to know more, Richardson will be speaking on this topic at the Operations Summit in Memphis May 2-3. For more information, go to www.operationssummit.com.

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