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The True Cost of Free Shipping

We all enjoy the simplicity of shopping online: Add to cart, choose the shipping method and checkout. After that we relax while your supplier takes over, ships your packages to us and your courier shows up at your door. It truly seems a simple process, but there are many operations which must occur in a highly-coordinated manner to perform the minor miracle of delivering a package from thousands of miles away directly into your hands.

Given the current "Season of Savings" from Black Friday to Christmas and even beyond, most websites will display the alluring "Free Shipping" offer. Yes, shipping costs do add up, so every dollar saved definitely matters. However it is crucial to understand exactly what you give up in return for so-called "Free Shipping". Note that Amazon Prime shipments are not subject to the delays described below.

1
Shipping your package from the supplier to our warehouse is certainly not Free.

2
The supplier actually ships your item using the absolute cheapest carrier - United States Postal Service (USPS). Not only is the cheapest carrier used, but the least-priority delivery method is often chosen to keep the cost minimal.
3
FedEx SmartPost and UPS SurePost. Your package may start off in the hands of FedEx or UPS, two well-known, reliable couriers. However packages shipped via their SmartPost and SurePost services are initially collected by FedEx and UPS, recorded as being shipped with them and then delivered to the US Post Office who takes control of your package... again under their lowest-priority delivery service.
4
Even after your package eventually arrives at the last Post Office in their network, it can take up to five (5) business days for their sorting process to be completed before your package is made available.
5
Is USPS really that slow? Yes. Tasked with the responsibility of delivering time-sensitive packages for US residents and businesses, the US Postal Service already has their hands full. With the added demand from other Miami-based skybox companies, many of whom serve the millions-strong Latin American market, it is no surprise that the US Postal Service is strained to the absolute limit.

So what does this mean?

Free shipping offers are undoubtedly an attractive part of the savings we enjoy when shopping online. However for urgent or time-sensitive packages, you may wish to consider one of the faster, paid options.

Why doesn't this apply to Amazon Prime packages?

First of all, Amazon charges an annual fee (currently US$99.00) for this service. This helps them offset the cost of expedited delivery. Secondly and most importantly, items offered with the Amazon Prime delivery guarantee are almost always stocked at one of their warehouses which already belongs to a tried and tested, efficient delivery network which ensures they can manage the cost of these shipments while guaranteeing a 2-day delivery.
Did you know that Amazon Prime members can share their Prime Membership benefits with up to 5 family members?

We do hope this article was helpful in enabling you to understand the trade-off of shipping speed vs. savings when selecting Free Shipping at checkout. If you have any questions or concerns, please contact us.


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