How does Amazon give free shipping?
Do they have an arrangement with the postal service?
I think it just means that the seller will pay the shipping costs from the sales proceeds.
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,
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.
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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