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Shipping directly to consumers is more expensive and energy consuming than shipping to a single location (e.g. a brick and mortar store). However what this art
by kogepathic 10y ago
Shipping directly to consumers is more expensive and energy consuming than shipping to a single location (e.g. a brick and mortar store).
However what this article is neglecting is that brick and mortar stores are built where people go to them. The land and building cost money, which the store typically pays for through a lease.
So, yes, shipping isn't free. But having products sit on a shelf in a store in the city isn't free either. Especially if said products depreciate in value and aren't sold quickly.
Basically, look at why RadioShack went bankrupt to see how this can backfire for brick and mortar.
Also, "Free" shipping from China isn't. The cost of shipping from China is subsidized by other countries. I remember reading that the price to ship something from China to your house in the US, USPS gets paid less than it costs them to ship.
Shipping rates from China are up for review soon, and the industry is expecting their rates to be re-adjusted, after which ordering from China will get a lot more expensive...
- massysett 10y agoExactly...I'm waiting for an article saying that the air conditioning and toilet water in Walmart aren't free. Article is one big "duh". Of course shipping isn't free. It's up to the company to figure out how to reduce or recover this cost, just like Walmart optimizes its supply chain.
- ryao 10y agoWhen will they come up for review? I want to know when the cut off is for placing orders at the current rates.
- kogepathic 10y agoCan't remember when, but here's an article on it: http://fortune.com/2015/03/11/united-nations-subsidy-chinese-shipping http://fortune.com/2015/03/11/united-nations-subsidy-chinese... Edit: "As part of this reform process, China will be transitioned in 2016 into a category for more developed nations, who generally pay higher terminal dues."