Why Free Shipping Isn’t Free – FedEx, UPS and Amazon.

It is easier to say “free shipping” and bake the shipping cost into the overall order. Nothing is free especially rings true in business.

While free shipping may seem like a great deal for customers, it is important to note that it is not actually free for the company offering it. Instead, the cost of shipping is built into the price of the product or absorbed by the company as a marketing expense.

There are a number of factors that contribute to the cost of shipping, including:

Transportation costs: Shipping companies, such as FedEx and UPS, charge fees to transport packages from one location to another. These fees are based on factors such as the distance traveled, the size and weight of the package, and the speed of delivery.
Packaging materials: Companies must also pay for the materials used to package and protect products during shipping, such as boxes, tape, and bubble wrap.
Handling costs: Companies must also pay for the labor involved in preparing and shipping packages, including sorting, labeling, and loading packages onto delivery vehicles.

Overall, while free shipping may be a convenient and attractive option for customers, it is important to understand that the cost of shipping is not actually free, and is instead built into the price of the product or absorbed by the company as a marketing expense.

Logistics and Shipping Resources

Logistics, eCommerce and Shipping Quotes

“What we need to do is always lean into the future; when the world changes around you and when it changes against you – what used to be a tailwind is now a head wind – you have to lean into that and figure out what to do because complaining isn’t a strategy.” ~Jeff Bezos
“My vision is to build an e-commerce ecosystem that allows consumers and businesses to do all aspects of business online.” ~Jack Ma
“Eighty-five percent of the reasons for failure are deficiencies in the systems and process rather than the employee. The role of management is to change the process rather than badgering individuals to do better.” ~W. Edwards Deming
“The people who said they would never order online changed their minds due to COVID-19.” ~Dave Waters
“We’ve had three big ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. Invent. And be patient.” ~Jeff Bezos
“It’s clear to us that the status quo is unacceptable, congress and the administration should act. Given our decades of experience selling firearms, we are also offering to serve as a resource in the national debate on responsible gun sales.” ~Doug McMillon
“Without logistics the world stops.” ~Dave Waters