Wexford Distribution Research
Service Terms IndexNo. 5 · Q3 2026
Service Terms Index · Industrial distributionData to 30 September 2026
Free freight gets harder to earn, most of all in MRO
Twelve of the forty distributors we track raised the order value that earns free freight this quarter. Delivery promises held, and restocking fees spread
1Free freight thresholds
Thresholds rose in every vertical we track except fasteners, where only one distributor moved and the median held at $150. Four of the ten MRO distributors raised their threshold in July or August, taking the median from $75 to $100 for the first time since the index began.1
| Vertical | Tracked | Q3 2026 | Q3 2025 | Raised in Q3 |
|---|---|---|---|---|
| MRO | 10 | $100 | $75 | 4 |
| Electrical | 9 | $250 | $200 | 3 |
| Fasteners and industrial supply | 7 | $150 | $150 | 1 |
| Fluid power and motion | 8 | $500 | $400 | 3 |
| Safety and PPE | 6 | $99 | $75 | 1 |
| All tracked | 40 | $150 | $125 | 12 |
Source: official distributor catalogs, published terms of sale, shipping and return policy pages, Wexford Distribution Research archive
Source: official distributor catalogs, published terms of sale, shipping and return policy pages, Wexford Distribution Research archive
2Delivery, minimums and returns
Delivery commitments were stable. MRO distributors still lead on next day promises, while fluid power distributors, who sell more engineered and made to order items, publish them least. Return terms moved more: the restocking fee is now the norm in electrical and fluid power, and the median return window across all distributors stays at 60 days.2
| Vertical | Next day | Minimum order | Return window | Restocking fee |
|---|---|---|---|---|
| MRO | 9 of 10 | $25 | 90 days | 4 of 10 |
| Electrical | 6 of 9 | None | 30 days | 6 of 9 |
| Fasteners and industrial supply | 3 of 7 | $50 | 60 days | 4 of 7 |
| Fluid power and motion | 3 of 8 | $100 | 30 days | 6 of 8 |
| Safety and PPE | 4 of 6 | None | 60 days | 2 of 6 |
| All tracked | 25 of 40 | $25 | 60 days | 22 of 40 |
Source: official distributor catalogs, published terms of sale, shipping and return policy pages, Wexford Distribution Research archive
3What changed this quarter
We recorded 33 changes to published terms in the quarter, against 21 in the second quarter. Freight thresholds and restocking fees account for 19 of them. Four distributors added value added services such as vending replenishment or kitting to their standard account terms.
Source: official distributor catalogs, published terms of sale, shipping and return policy pages, Wexford Distribution Research archive
4Against our Sentiment Survey
5What to watch in the fourth quarter
January catalog and price list releases, when most threshold changes have historically taken effect, whether more electrical distributors follow with restocking fees, and the winter Sentiment Survey, which will show whether buyers have begun moving spend.
How this index is built
- The index covers the 40 largest industrial distributors by North American sales across five verticals, reviewed each January
- Terms are read from official catalogs and policy pages and dated by the version in force at quarter end
- Medians use published standard terms only and ignore contract, account or promotional terms
Approved for subscribersMartin KeoghDirector of Distribution Research · 7 October 2026
1 Thresholds apply to standard ground shipping within the contiguous United States on orders at published list price.
2 Next day means a published commitment for in stock items ordered before the distributor's stated cutoff time.