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  • 12.28.16

A fifth of the total value of the products you buy online goes to home-delivery costs

As our Neal Ungerleider recently discussed, free shipping is a lie.

A recent story in Business of Fashion describes some of the human costs of the fast shipping we have come to expect. LCP, a global supply chain consultancy, says that home delivery makes up about 20% of the total value of the items you buy. (By comparison, delivering products to stores accounts for only 5% to 7% of the value of items.) 

Luxury goods brands have more leeway, since customers often have a higher order value. Fast-fashion retailers struggle, since they already run on smaller margins. Read the full story hereES