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Sure. That's because a lot of the delivery business is fixed costs. But still, depending on the cost and the average number of packages, it could come out as a
by petra 7y ago
Sure. That's because a lot of the delivery business is fixed costs.
But still, depending on the cost and the average number of packages, it could come out as a significant cost per order.
- jessriedel 7y agoEmployee salaries would also come out as a significant cost per order. The point is that it might not make any more sense to pull out explicit shipping prices as it would to include an employee-salary fee on all products.
- jerf 7y agoThat's an interesting point. The core reason why shipping costs were pulled out separately is that it allowed the customer to choose between various options freely, if they needed it tomorrow vs. whenever. If there's no choice, there's much less incentive to do that. However, there's still at least a little something I can think of; shipping is generally not part of the sales tax. Rolling it into the price means you're also making your customers pay sales tax on it. That depends on whether you've got to pay tax on the item in question, of course, which varies every which way.