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How much does it cost companies to ship items?

post #1 of 7
9/28/09 at 8:57pm
Thread Starter 
Im always wondering why I must pay $12.00 for shipping. I know they have some type of reduced shipping price, and there is no way I should be being charged $12 to ship. Lets use a company like Amazon.com. Even though $25+ is free shipping, how much does it cost them to ship an item?
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post #2 of 7
9/28/09 at 9:37pm
How much does it cost them to ship an item? Don't you think that is being a little to broad. And your paying $12 because they are making money of the shipping, it's pretty simple.
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post #3 of 7
9/28/09 at 9:41pm
Companies like Amazon who ship thousands to millions of packages a year can negotiate significantly better shipping rates than what the regular person pays.

At that point, shipping companies (including USPS) will also start to compete with each other for your business.
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post #4 of 7
9/28/09 at 9:51pm
Thread Starter 
Quote:
Originally Posted by enjoiii View Post
How much does it cost them to ship an item? Don't you think that is being a little to broad.
And your paying $12 because they are making money of the shipping, it's pretty simple.

I know, I'm trying to figure out how much they are making from shipping.
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post #5 of 7
9/28/09 at 9:57pm
it is not they are all trying to make money off of shipping. sometimes it is a flat rate on an average cost, your cost may offset another shipment that costed them more.

sometimes they lose a little like in free shipping offers but they do that as an incentive for you to purchase.
i offer free ship on all my ebay items domestically. it figures for more attention and more bidding. the cost comes out of my pocket but i figure it is offset by anything i make off the actual product (for items i sell to try to make some bux on)
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post #6 of 7
9/28/09 at 10:47pm
I've taken advantage of free shipping for recent purchases, even in-store purchases with items shipped to my house. I haven't paid for shipping in quite some time.
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post #7 of 7
9/29/09 at 10:54am
Consider that with the actual shipping charges they pay to UPS/FedEX/Etc, they also have to factor in the cartons, packing materials, and labor to pick and pack. That said, there's no exact amount here - it's a best-guess average, depending on weight and distance.
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