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What Is the Significance of Cheap Shipping Rates?

by Jameshorncastle

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You must think me dumb to write on such a subject as the significance of cheap shipping rates. The significance is spelt out right there in the title: “cheap” is all that matters, right? Wrong. Usually, in this world of pains, “free” can be very painful and “cheap” more painful than other alternatives, unless you’ve really found an honest bargain. Try out all the free and cheap things available on the Internet without reading the small print, and you can find out for yourself. Of course, to some macho people “pain is gain,” but this article is not for them. This is for those who want to find out the ins and outs of what actually represents cheap shipping, what to avoid, and what to accept.

Cheap shipping is rarely cheap up front:

The costs are always there, the overheads are always there, the larger the company, the bigger the overheads and establishment costs, and if there is cheap shipping from reliable companies it happens through a process and rarely up front. Genuine cheap shipping occurs only when companies pass parts of their overheads to others like intermediaries ( would be a good example here), and those intermediaries in turn pass a part of the responsibilities, as well as savings, to the end consumer.

So let’s see how it works. Costs and pricing in the service industry do not reduce in all fronts with the increase in the quantity of work. While in automated manufacturing, there is a simple relationship between increase in the number of units and reduction of costs, it doesn’t happen so in the services industry. In fact, with the increase in the amount of work to be handled, overheads, coordination, and managerial costs skyrocket in couriers, and only by distributing the overheads, coordination, and managerial functions among franchisees and intermediaries is how major courier companies can reach consumers with cheap shipping. There is no magic here.

The intermediaries in turn, pass part of the work directly to the consumer opting for cheap shipping and manage to turn a profit at reduced costs. I do remember the times when courier boys who came to collect parcels, brought along packaging material on demand, parceled and taped everything in front of me and went off. Sometimes, they even filled out the labels themselves. Now, that part of the work needs to be done by the consumer who wants cheap shipping. Luxury service is still available, but does not come cheap.

The more time you give, the cheaper it gets:

And, of course, vice versa: The more urgent the delivery, the greater the costs of shipping. If you are booking early, and off season, then cheap shipping packages would be available to you in greater numbers than at other times.

Where you find cheap shipping, besides the two mentioned scenarios, kindly read the small print in detail and cross check the credibility of the service providers, unless it is a well-publicized discount scheme.

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