Thursday, January 20, 2011
Shipping Rates and the end of cheap oil
Shipping rates have increased drastically recently. I purchase my gifts online and generally look for the estimated cost of shipping to factor into my price. Using online market places like Amazon make it easy and relatively convenient, except when it comes to international shipping rates. Those babies just pop up at the end of the transaction. Surprise! An extra 50$ on your order. I alternate between using my co.uk, .com, and .ca accounts to see where I can get the most savings, both on product price and shipping. However, then I am hit with a 5$ international transaction charge by my credit card. It is beyond me how they can charge me on top of the price I am already paying. The sellers have agreements with credit card companies to use online credit card payment services in the first place. There is still little difference in price for me, which means shipping has gone up substantially in the last 4 years since I started using Amazon. US sellers advertise in canadian dollars at higher prices despite the equal exchange rate and the Canadian purchaser is stuck with import duties and higher shipping prices. Where are the rising tides, Smith? What happened to the fruits of globalization and NAFTA where goods would move freely and consumers would have a choice about shipping rates? Even standard shipping is ridiculous. One seller quoted a 30-40 week estimation for a book. This past Christmas, instead of ordering a gift online, I returned to my local retailer where I paid the same price for the product without double the cost of shipping. If more customers think like me, online shopping revenues should decrease. Convenience is coming at a higher price and I predict a return to an era of localization and the end of online shopping as we know it.
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