Dr. Jon Jackson is Associate Professor – Operations Management at Providence College
For years, e-commerce conditioned shoppers to expect near-instant gratification. Fast shipping became the industry standard as retailers tried to keep pace with Amazon. First, it was 2-day shipping, then next day shipping, and ultimately same day shipping. But the economics behind those fast-shipping promises are starting to crack, and retailers are quietly resetting expectations, according to a recent report in The Wall Street Journal (Mar. 6, 2026).
Shipping costs have risen sharply in recent years. Major carriers such as FedEx and UPS have increased base rates annually while adding fuel surcharges, residential delivery fees, and dimensional pricing rules. As a result, retailers are increasingly shifting their focus from “fastest delivery” to “lowest cost delivery.”Amazon now offers customers a small discount if they choose a slower delivery date. Many other retailers have followed suit by introducing “no-rush” shipping that may take a week or longer.
Interestingly, customers appear willing to wait. McKinsey surveyed over 1,000 people in 2024, and speed of delivery dropped from the #1 priority in 2022 to the #5 priority in 2024. Meanwhile, the cost of delivery maintained its high priority, with more than 95% of surveyed shoppers saying that they prefer free standard shipping instead of paying for faster shipping.
Longer delivery windows help logistics networks operate more efficiently. When retailers promise delivery in 5-7 days instead of two, carriers can consolidate shipments onto fuller trucks, lowering the cost per package. Some retailers even encourage customers to choose delivery days later in the week when shipping networks are less congested.
Another unexpected benefit: fewer returns. Retailers report that extending delivery times leads to more intentional purchases and significantly lower return rates. The era of “fastest possible shipping” may not be ending, but it is becoming just one option among many.
Classroom Discussion Questions
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If customers say they prioritize low shipping costs over speed, how should retailers redesign their fulfillment and delivery strategies?
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Do you think slower shipping could become the new norm in e-commerce, or will competition eventually push retailers back toward faster delivery times? Why?