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.[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.[2]

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

Notes and references