Paying for ‘free’shipping

Read the fine print before joining a subscription delivery plan

First they wanted free. Now they want fast. As shoppers turn to the convenience of cyberstores, they crave shipping that can keep up with their demands.

Retailers have answered the call for free and swift delivery in different ways. Under Amazon’s subscription model, members pay a fee to get free shipping. Wal-Mart and Best Buy provide free and fast shipping if you meet their conditions.

Here’s what you should think about before deciding to pay for a subscription.

1 Low minimums

If your orders meet minimum-purchase thresholds, you can get speedy and free delivery without a subscription from some retailers.

Wal-Mart announced free two-day shipping on eligible orders of $35 and above for more than 2 million items in categories from food to electronics while eliminating its membership program in early 2017.

Best Buy offers free two-day shipping on thousands of items for orders of $35 and up. Apple boasts free two-day shipping on most in-stock products.

2 Features

Even if free two-day shipping becomes standard, consumers should consider other features says Aaron Cheris, a partner at management consultancy Bain & Co.

For instance, a membership at shopping service ShopRunner unlocks free two-day shipping on eligible items at hundreds of participating retailers. After a 30-day free trial, the fee is $79 a year or $8.95 a month.

Amazon Prime members pay $99 a year or $10.99 a month to get free two-day shipping on more than 50 million items, plus free same-day and two-hour delivery on household goods, groceries and other items in select cities. Shoppers also get extras such as video and music streaming.

“The reason people join is for the free, fast shipping, but the reason they stay is because a lot of them get attached to other stuff, whether it's Prime Now or Prime Pantry or Prime Instant Video,” Cheris says.

3 Price

When shopping without a membership, ensure that a retailer with free shipping isn’t charging more for its products than what you would save on shipping.

For example, a pair of Nike running shoes recently sold for $48.75 at J.C. Penney with $8.95 shipping, for a total of $57.70 before tax. The same item came with free shipping at Zappos for $65.

4 Frequency

If you make frequent online purchases of items such as paper towels and cleaning supplies, shipping charges can add up, so investing in a subscription may be better.

“It depends on how frequently you shop the category,” says Mabel McLean of online performance tracker L2. “I think paying seven bucks for shipping when you’re buying clothing and maybe only order online five times a year, that’s a little bit more palatable than higher-frequency categories.”