How many times have you did your homework, knew the products you wanted, researched and finally found the lowest prices, then began to fill out your online order. However on the last checkout page you see your shipping and handling charges. First reaction is sticker shock, second is to move on and find another website. You trustworthiness against online companies deteriorates further.
At this point you have wasted your time and are leery of websites charging shipping and handling. You reason that this “lowest priced company” was low balling the price only to snare you with extra charges. After the extra charges your final cost is higher than the other companies you were pricing.
Now you question how can these companies get away with these extreme shipping and handling charges. The fact is they can legally get away with it as long as their shipping and handling policies are stated on their website. Many times you have to dig deep for their terms of sale or shipping information page, especially when these pages are not favorable to their customers.
However there you should find how they determine their handling charges. Some companies charge per box, as high as $3.00 each. Others charge by the dollar value of the order. This I have never understood since charging by dollar value only serves to penalize your largest and most desirable customers. Why would any company want to do that. Yet, it’s common practice with companies that charge handling fees. Handling fees go to the companies bottom line, it’s a goldmine for a company thanks to the customers willing to pay them. I for one don’t enjoy them pocketing my money.
Then there is the shipping charges. If shipping UPS or Fedex there are multiple charges that get added together to make the shipping charge. First is package weight, then dimension. After that they tack on residential charges, extended area delivery charges, fuel charges and insurance charges. Residential and extended area charges add an additional $5.25 per package. So if you are receiving three packages that is over $15.00. This doesn’t even include the weight and dimension. Then there is fuel surcharges which vary according to market prices but now average around 7%. Now combine the above shipping charges with the companies handling charges and you get sticker shock.
Free Shipping at Fetpak
The ironic thing about the shipping charges is that in the majority of cases the company is profiting off those charges. Most companies receive steep discounts off the book rates. Those discounts go to their bottom line. I’m sure they appreciate you donating to them. So by profiting from the shipping and handling they can sometimes offer the illusion of low prices. Yet the reality is they are profiting heavy from both shipping and handling charges.
You begin your search again and smartly look for companies offering free shipping. Most companies offering free shipping have minimum orders or a minimal small order charge. This makes sense as they cannot offer free shipping and absorb the freight cost on small dollar amounts. So again, make sure you read the terms of sale.
The advantage of free shipping is that you know the exact price landed to your door. I always believe in trying to keep thing as simple and honest as possible. I know consumers feel the same way. The more haziness and complicated things are the more they work against the consumer. No games and no extra profits for the companies. Both the honest company and the consumer can be satisfied with the transaction, that is the goal.
