Major retailers are cutting delivery fees again, betting that cheaper shipping converts shoppers who have grown wary of add-on costs at checkout. Executives say the economics look different now, with denser fulfillment networks and better route planning reducing wasted miles.

Competitors face a familiar dilemma: match the pricing and squeeze margins, or hold the line and risk losing market share. Industry analysts say the outcome may depend on who can bundle shipping with loyalty benefits without training customers to expect everything for free.

For consumers, the immediate effect is simple—more options. For the sector, the question is whether a price war returns just as companies had begun to prioritize profits over growth.