YF Logistics LLC: On a basic level, there are a few strategies to help businesses cover the cost of free shipping. First, increase product prices to cover shipping costs. In this case, the customer pays. Second, the business pays the full price of shipping. Third, the company slightly increases prices of products to cover some shipping costs, so that both pay a portion. Businesses can also get creative, offering free shipping when a customer hits a minimum order value. This strategy can help by increasing an average order size; therefore, increasing profits to help offset shipping costs.