4 ms·
The free shipping isn't from the profit they make from their products, it's from the extra cost added to all their products that are listed online. Their pre-sh
by chipperyman573 9y ago
The free shipping isn't from the profit they make from their products, it's from the extra cost added to all their products that are listed online. Their pre-shipping profit is greater than the profit of the items in the store. Once they spend the money to ship the items, it's roughly the same.
For example, let's say a widget costs $10 in Walmart stores and will cost $1 for walmart ship with their negotiated contracts. If I go to the store, I can pay $10 and buy the widget. However, if I go online, Walmart.com will say the item costs $11 with "free shipping", or I can pick it up in store for a $1 "discount" (so now I pay $10 for a "$11" item). So even though they get all the positive PR and subconscious biases associated with free shipping, they are not paying for it at all. They even pretend like you're getting a great deal by going and picking it up yourself, even though you're just paying what you otherwise would have if you skipped walmart.com entirely.
- Johnny555 9y agoThe free shipping isn't from the profit they make from their products, it's from the extra cost added to all their products that are listed online What's the difference between the profit they make from the products, and money they make from extra cost added to the products? Isn't that just another way to define profit?