No, This is not the case, it's a business model change.
Here is an example http://www.dealextreme.com/details.dx/sku.8667 I can purchase 100 dice for $2.20 including free world wide shipping. There are cheaper items on this site also all with free shipping. There is no shipping cost built into this price, (in fact the shipping would cost more than $2.20 to most businesses) and if you look at the items on this site, they are very cheap. They just choose to make less margin and across the range of products the shipping is covered by the margin. It's a simple business model. We had $1mill worth of income, $100k was freight. So really simple $1,000,000 Sales -$100,000 Freight Costs -$700,000 Cost of Goods = $200,000k profit Then they say, well we would still be profitable if we didn't charge freight. Except we would sell a hell of a lot more. So lets 4 x the numbers $3,600,000 Sales (No freight Income) -$400,000 Freight Costs -$2,800,000 Cost of Goods = $400k profit And thats why they do it, as no freight = less checkout dropout = more sales = bigger profit. How many times did you go online to buy something but didn't because of the freight. Regards Dale Fraser http://learncf.com -----Original Message----- From: Michael Dinowitz [mailto:[EMAIL PROTECTED] Sent: Tuesday, 4 March 2008 2:10 PM To: CF-Talk Subject: Re: Calculating freight for shopping application More often than not when this is done it is because: 1. the shipping is rolled into the price 2. the shipping has been flattened out so people in one location are paying more (relatively) and people in other locations are paying less 3. This is done when there is competition and you want to look like you are giving a bargain 4. The free shipping tends to be the cheapest possible with more costly upgrades Bottom line is that the 'free shipping' is not always as free as you may think On Mon, Mar 3, 2008 at 9:40 PM, Dale Fraser <[EMAIL PROTECTED]> wrote: > In case you hadn't realised, charging for freight is dying. > > A lot of sites now offer site wide international free delivery. I know > that > might not be your choice as the developer, but you should pitch it. > > When shipping is free, people buy more and come back more, it works!. > > Regards > Dale Fraser > http://learncf.com > > -----Original Message----- > From: Mike Little [mailto:[EMAIL PROTECTED] > Sent: Tuesday, 4 March 2008 1:00 PM > To: CF-Talk > Subject: Re: Calculating freight for shopping application > > obviously bricks would not be shipped with glass :) > > what i am saying is that each product has its own shipping price defined > at > the admin stage - as opposed to working out freight based on weight of > product eg. artwork would work on dimensions as opposed to weight? > > a matrix to solve the purchase of more than one item could definitely be > included. > > eg. 1-5 items - $x, 6-10 items - $X > > the nature of the products on sale however would not really need this, but > there may be instances where a client purchases 2 designer t-shirts or > something. > > if only i could see amazon's freight matrix !! > > > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;160198600;22374440;w Archive: http://www.houseoffusion.com/groups/CF-Talk/message.cfm/messageid:300377 Subscription: http://www.houseoffusion.com/groups/CF-Talk/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.4
