It is kind of a dick move when companies overcharge for shipping. I only charge calculated shipping on large or heavy items because those are the ones that vary a lot and I don't want someone in zone 8 (like Southern California or even someone in HI buying it and shipping costing more than they paid. If it's under 1 lb then I just give free shipping and bake it into the price.
This reminds me of my early shopping days using EBay, where it wasnât uncommon for sellers to under-price their products so they show up near the top of the price (cheapest-most expensive) sort pile, and then charge an outrageous amount in shipping.
Iâve found that almost always (at the time), that the seller offering free or low cost shipping was usually cheaper.
That was because their fees were based on the sale price of the item minus the shipping. So they were only paying fees on 1 cent. They changed the fees so that the total sale including shipping is calculated.
Part of it is that there's less hidden costs. I like it when it's just "the total is $30" instead of "there's $8 shipping and a $2 service fee and then $4 in taxes and..."
I've also seen some online stores lure in a customer with a really cheap initial price and then on the last page just slam them with insane shipping and handling fees hoping that the customer either doesn't notice or feels too invested at this point to cancel their purchase.
But yes, part of it is also people are stupid when they see the word "free" as if the store wouldn't move the cost somewhere else.