Originally posted by: shud
I find that ZipZoomFly and ChiefValue are frequently lower priced than Newegg, but Newegg has the best selection. Whatever happened to their free Fedex Saver shipping? It's NEVER free anymore, always costs money and sometimes it's something ridiculous like $5 for a processor.
In the defense of newegg (defending my competitors, go figure) I understand the shipping fees. I say this for 2 reasons:
1.) On may items, thier prices are very low (far lower than I can even buy them for at wholesale costs) and they
are a business. We businesses have to make money somehow. So it's either going to be that newegg charges a bit more for thier shipping, or they raise product prices.
2.) You are correct that it doesn't cost us $5 to ship a processor. What does cost us $5 is the shipping, the boxes, paying our shipping staff, the packaging, the warehouse space, the insurance, the employee benefits...etc etc.
You could definitely make the argument that it's better to charge more on the product to cover those costs, and charge the only enough for shipping to cover just that. However, I can tell you that we markup our shipping costs by a small amount as well. We do this because it is easier from an accounting / ROI standpoint as I know exactly what "upcharges" are paying for what services. My mark-up on products pays my sales staff, web server, leases, etc. My shipping mark-up pays my warehouse and shipping staff, etc. From my mind, customers will still pay $X when they buy a product, wether our markup is purely on the product, or split between product and shipping. As such, I think it's not a big problem.
Do you guys, as customers, disagree with this? I'd be very curious. If the general consenus is that this method is not liked, I would change our system accordingly.
Where I think this becomes a real problem is when companies advertise a processor (or whatever) for a rock bottom price, to lure you in. Then they charge a ridiculous amount for shipping, upwards of $14, to make back thier money. That, to me, is where it starts to be a little deceptive.
Back on topic though, I have actually never had much problem with Tiger Direct. Though, in fairness, I haven't bought from them in years for obvious reasons.