Is Free Shipping Actually Free? | Introduction to E-commerce EP 5

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Find out if "Free Shipping" is actually free and who pays for the costs associated with it.

Turns out, typically, the merchant factors the cost of shipping into their selling price, and the free shipping offer is just a way of simplifying things for the customer.

Shipping costs vary from one merchant to another, and there can be huge volume discounts that give larger companies a big advantage over smaller merchants.

Also, many merchants are able to leverage Amazon’s discounted rates to keep these costs down.

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