Difference between revisions of "Free shipping"

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'''Free shipping''', particularly fast free shipping, such as offered by [[Amazon]] during the [[Holiday season]], is usually, perhaps always, done below [[cost]].<ref name = R010215 >[http://www.reuters.com/article/2015/01/02/us-retail-shipping-holidays-analysis-idUSKBN0KB0P720150102 "Free delivery creates holiday boon for U.S. consumers at high cost"] article by Deepa Seetharaman and Nathan Layne on Reuters.com Janurary 2, 2015</ref> Substantial discounts, as much as 70%, are offered to [[online retail|online retailers]] with substantial volume such as [[WalMart]] and [[Amazon]]. This is based on an annual volume of $100 million or more in shipping costs.<ref name = WSJ42716 >[http://www.wsj.com/articles/for-online-shoppers-free-shipping-reigns-supreme-1461789381 "‘Free’ Shipping Crowds Out Small Retailers: Businesses scramble to keep up with e-commerce merchants that enjoy big discounts from carriers"] article by Laura Stevens in ''[[The Wall Street Journal]]'' April 27, 2016</ref>
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'''Free shipping''', particularly fast free shipping, such as offered by [[Amazon]] during the [[Holiday season]], is usually, perhaps always, done below [[cost]].<ref name = R010215 >[http://www.reuters.com/article/2015/01/02/us-retail-shipping-holidays-analysis-idUSKBN0KB0P720150102 "Free delivery creates holiday boon for U.S. consumers at high cost"] article by Deepa Seetharaman and Nathan Layne on Reuters.com Janurary 2, 2015</ref> Substantial discounts, as much as 70%, are offered to [[online retail|online retailers]] with substantial volume such as [[WalMart]] and [[Amazon]]. This is based on an annual volume of $100 million or more in shipping costs. Amazon, the leading shipper, WalMart is second, spent $11.54 billion on shipping in 2015.<ref name = WSJ42716 >[http://www.wsj.com/articles/for-online-shoppers-free-shipping-reigns-supreme-1461789381 "‘Free’ Shipping Crowds Out Small Retailers: Businesses scramble to keep up with e-commerce merchants that enjoy big discounts from carriers"] article by Laura Stevens in ''[[The Wall Street Journal]]'' April 27, 2016</ref>
  
 
Despite a hefty $99 annual charge for [[Amazon Prime]], free, 2 day shipping, seems actually free to many consumers.<ref name = WSJ42716 />
 
Despite a hefty $99 annual charge for [[Amazon Prime]], free, 2 day shipping, seems actually free to many consumers.<ref name = WSJ42716 />

Latest revision as of 00:35, 28 April 2016

Free shipping, particularly fast free shipping, such as offered by Amazon during the Holiday season, is usually, perhaps always, done below cost.[1] Substantial discounts, as much as 70%, are offered to online retailers with substantial volume such as WalMart and Amazon. This is based on an annual volume of $100 million or more in shipping costs. Amazon, the leading shipper, WalMart is second, spent $11.54 billion on shipping in 2015.[2]

Despite a hefty $99 annual charge for Amazon Prime, free, 2 day shipping, seems actually free to many consumers.[2]

Notes and references