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Or the retailer could just choose to eat the cost for those ~5% of cases to avoid annoying their customers.

• thaumasiotes 10y ago
  That is precisely the "free shipping" strategy...
  • jordache 10y ago
    as a reasonably smart individual, when doing price comparison shopping, you would obviously compare the final out of pocket cost, selling price + shipping + tax
    • thaumasiotes 10y ago
      I'm not sure how this responds to my comment? All I said was that "free shipping" is exactly the same thing as saying "I estimate that shipping is generally below $X, but if it turns out to cost more, I will eat that cost".
      • jordache 10y ago
        the imply was that some retailers will jack up the cost of an item in order to provide free shipping. I'm just pointing out that doesn't really work unless the buyer is stupid and uniquely drawn to the free shipping offer.