I’ve been following this thread with interest because I run a small business that has a good portion of its transactions conducted through eBay. I have run that business for over 20 years and watched as Amazon slowly rose to the level of dominance they’ve achieved. I’ve also watched as a small niche oriented business like eBay grew to be the massive retail site it is, all the while wanting nothing more than to be another Amazon. Etsy, as well, has been striving, of late, to be an Amazon alternative. That’s a far cry from the handcrafted merchandise they used to specialize in.
I guess it’s business 101, grow or die. As a result, we’ve lost a lot of great resources over the years both brick and mortar and online. I live in a town where the last of the “mom and pop” stores are confined to a couple of streets downtown. The roads reaching into town are littered with Walmarts, Home Depots, etc.
This thread about free shipping grabbed my interest for a number of reasons.
First, to all you consumers out there, did no one ever tell you “There’s no such thing as a free lunch?”
Do you honestly think that any successful business is simply going to eat the cost of shipping you merchandise? All free shipping has done is relieved you of the necessity of clicking a few more boxes to determine the total cost of your item. People like Jeff Bezos realized that the fewer clicks to complete a purchase, the less likely it is to lose the customer to anything ranging from second thoughts to distractions running the gamut.
Free shipping means that any responsible retailer, interested in actually staying in business, calculates the most it will cost to ship an item across the country. They then price the item accordingly. That may mean the total price is the cost of the item plus the cost of shipping from NY to CA or they may have a sophisticated algorithm (more likely) that effectively determines the best price to charge factoring in the likelihood some of the items may ship from NY to CT while others may go from NY to MO and others may make the trip all the way from NY to WA.
The bottom line is that anyone who thinks they are not paying for shipping is a fool, period.
What’s worse is if you happen to live near the business you are buying from, let’s say someone in NY buying from ZZounds in NJ, that algorithm they use to determine the “one price fits all” for “free shipping” may mean you’re actually paying more than if you could actually go back to the old ways of calculating your shipping cost based on your zip code.
Another issue that I find particularly repugnant with regard to the notion of free shipping, is that it takes out of the equation of purchasing, where the item is shipping from and the insane cost of actually shipping an item. I don’t mean the dollars you pay or don’t pay, I’m talking about the cost, environmentally, when you buy an item on the other side of the country because it may cost $499.98 as opposed to $500.00. Believe me, I see this happen all the time. A consumer, let’s say in CA forever in the search for the absolute lowest price, is more than happy to buy an item for $499.98 from a seller in NY as opposed to buying the same identical item from a seller for $500.00 who might be only a few hundred miles away. Think about the waste in time, labor and fuel expended simply because an item was a few pennies cheaper from the seller on the other side of the country. It happens all the time.
Now I realize that for a portion of the population the concept of “free shipping” has been a boondoggle. I remember reading an older Amazon review where the customer located in Alaska was thrilled because they were able to order their entire town’s supplies through Amazon with “free shipping.” It saved them a ton of money and helped with their budget. It’s sad that they don’t realize that the rest of us consumers wind up ultimately paying for the cost of shipping to their remote location. Just a little socialism there for you libertarians.