Net Net: Promoting innovation and managing change
Net Net: Promoting innovation and managing change

Nordstrom Adds Free Shipping... All Aboard?

Nordstrom bag
Donato Sardella | WireImage | Getty Images

Nordstrom is going the free shipping route.

The retailer changed its online shipping policy this week. Customers will now receive free standard shipping and free returns every day on nearly all purchases. The prior policy required customers to spend at least $200.

Nordstrom is the first in its space to get rid of its minimum purchase requirement and offer the free perk. The retailer said it wants to provide a more compelling online shopping experience.

Wall Street Strategies Equity Research Strategist Brian Sozzi believes Nordstrom's decision could start a trend.

"It always seems once one company comes out with a headline grabbing program others will follow suit. I mean, at the end of the day, we are talking a few bucks to a luxury consumer. I think product selection and product availability more determining in getting the final sale between a Bloomies and Nordstrom," said Sozzi. "I wouldn't be surprised to see Bloomies respond."

At the moment, a Macy's spokesperson says there are no plans for Macy's or Bloomingdale's to change its shipping policy.

Here are how some of Nordstrom's competitors' shipping policies stack up:

  • Macy's charges free shipping on purchases of $99 or more and $8 for orders that cost less than $99.
  • Bloomingdale's requires customers to spend at least $300 to receive free shipping.
  • Lord & Taylor's standard delivery fees range from $5.95 to $24.95.
  • Saks Fifth Avenue charges between $5 and $20 for standard shipping.
  • Neiman Marcus' standard shipping fees range from $6 to $32.

**The list does not take into account any free shipping, seasonal promotions.

Stephanie is Squawk Box producer. Follow her on twitter @StephLandsman

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