Shipping costs have increased by more than 10 percent in the past month due to the US-Israel war on Iran. The 60-day waiver for the Jones Act aimed to lower energy costs but has had little impact on oil prices, which continue to rise amid the ongoing conflict.
You're scrolling through an online retailer, like Amazon, Shein or eBay, and spot a shirt on sale for $40. You add it to your cart, but at checkout, a $10 shipping fee suddenly appears. Frustrated, you close the tab. But what if that same shirt was priced at $50 with free shipping? The likelihood that you would have bought it without a second thought is much higher.
'That's just the tip of the iceberg when it comes to ongoing export costs and delays,' says Parcelhero's Head of Consumer Research, David Jinks M.I.L.T. 'It was not only to EU destinations that export costs rose. 'Costs for shipping to the USA and other international destinations also rose year-on-year. 40.5% of retailers and 36.1% of manufacturers reported their global exports cost them more in December than in the same month of 2024. Trump's tariffs, introduced last April, played a role in this overall increase.
The Prime program has been a cornerstone of Amazon's ( NASDAQ:AMZN ) revenue stream since it first began in 2005, offering unlimited, two-day shipping on a large selection of items for an annual fee of $79. Last year it generated a staggering $44.3 billion, up from $40.2 billion in 2023. This subscription service, a juggernaut in e-commerce, offers members free shipping, access to Prime Video, Prime Music, Kindle Unlimited, and a host of other perks, making it a compelling deal for millions.