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How does Amazon give free shipping?

  1. Pamela N Red profile image85
    Pamela N Redposted 5 years ago

    How does Amazon give free shipping?

    Do they have an arrangement with the postal service?

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  2. jellygator profile image91
    jellygatorposted 5 years ago

    I think it just means that the seller will pay the shipping costs from the sales proceeds.

  3. Pamela99 profile image87
    Pamela99posted 5 years ago

    This is an interesting question and I don't know the answer. You have to buy $25 of their items to get free shipping, but it may be more than one type of item, so I don't know that it is the manufacturer that is paying. Possibly most people spend more than $25, and because they so such a large volume of business they can still make a tidy profit by offering free shipping. I find the free shipping a plus to order online rather than drive to a store,

  4. kwade tweeling profile image88
    kwade tweelingposted 5 years ago

    Have you ever found yourself buying something just to make that extra 2 dollars for the free shipping? Did it end up costing more than 2 dollars?

    It's all about volume. They sell enough that shipping costs are negligible. Just look at sales at a retail store. When they drop the cost, more product sells. Thus they make more money. Same idea.

    1. teaches12345 profile image96
      teaches12345posted 5 years agoin reply to this

      I agree here with kwade, from my marketing experience with shipping, this is true.  They can do this based upon volume and costs will drop as the number of orders increase. They can then ship by getting a discount from the delivery service.

  5. profile image0
    Marntzuposted 5 years ago

    Simple, they charge enough for the product above their cost to both make a profit and cover the cost of shipping.

 
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