UPS - Amazon FedEx and UPS continue to tighten delivery options as age of totally free shipping slips away

2023-05-09 13:44:20 ET

Amazon ( NASDAQ: AMZN ) is the latest shipper to pull back on what was once widespread unlimited free shopping options in the retail sector.

The Seattle-based company is offering select Prime customers $10 to pick up a purchase from an access point, instead of having a shipments delivered to a home address. The company has pickup points at available locations such as Whole Foods, Amazon Fresh, and Kohl's ( KSS ) stores.

In another push to increase the usage of pickup points, Amazon ( AMZN ) has also started charge some customers a $1 fee if they return packages through UPS if an Amazon pickup or return location is closer to their delivery address.

Separately, Amazon ( AMZN ) is charging delivery fees to some customers for grocery orders under $150.

Shipping companies UPS ( UPS ) and FedEx ( FDX ) have also encouraged customers to use access points for shipments, especially in rural areas. An increase in customers using the pickup points could boost margins for shippers, while customers may have additional protection from porch theft.

A surge in transportation and labor costs over the last year has prompted the three shipping giants to rethink some of their shipping policies.

More on Amazon, FedEx and UPS:

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