Just like there’s no such thing as a free lunch, for consumers, retailers and shippers, there’s no such thing as free shipping.
Because the externalities created by free shipping include the need to cut costs, Bubble Wrap will need to be replaced by cheaper protective packaging.
Because free shipping creates pressure on retailers to send parcels more cheaply, UPS has had to lower costs by increasing processing productivity.
Have you ever been delighted that you got something for free? I was until I read “the cost of zero cost” in Dan Ariely’s book, Predictably Irrational. My story begins at a Papyrus store in NYC. About to pay for several…