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Technology Stocks : OnSale Inc. -- Ignore unavailable to you. Want to Upgrade?

To: PAL who wrote (2935)	12/30/1998 10:34:00 AM
From: j_b	Read Replies (2) \| Respond to of 4903

<<Do you notice that it is essentially the same whether shipped 100 miles or 2000 miles?>> Having worked in the past for an internet retailer, I can tell you that this is probably not a valid issue. UPS often arranges a uniform rate for a company, based on its volume rather than the distances involved. Also, ONSL has a warehouse more or less in the middle of the country, so most shipments (since it is likely that most shipments go to coastal regions) are probably similar in distance. <<My point is that shipping should not be a profit center for ONSL. >> Two points - first, why shouldn't shipping be a profit center? The whole idea is to maximize profits. Second - Some mail-order firms provide shipping at no additional charge. To do that, they have to increase the price on the goods. When people comparison shop, they see that price as higher than the competition. On the other hand, if you have a low price, people may be willing to pay higher shipping. Customers should be looking at the total cost, including taxes and shipping, but they often don't. You shouldn't look at just the price or just the shipping cost.