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The Hidden Cost of "Free" Shipping: What You’re Really Paying For

Kubby Team|September 6, 2024

In today's online shopping landscape, "free shipping" has become a powerful tool to attract customers. However, the reality is that nothing is truly free. Retailers often increase the price of their products to cover the cost of shipping, passing the expense onto you, the consumer. According to various sources, including Shopify and PYMNTS, merchants use this strategy to maintain profitability while offering the allure of free delivery​.

This practice can be particularly deceiving, as it gives the impression of getting a better deal when, in fact, you're still paying for the service, just in a less obvious way​.

For Gen Z and Millennials, who are savvy shoppers and value transparency, understanding this hidden cost is crucial. By being aware of these pricing strategies, you can make more informed purchasing decisions and avoid falling for marketing gimmicks that aren't as beneficial as they seem.

Supporting Data Sources:

Shopify, PYMNTS.com, LAB Open