Retail

8 Shopping Days 'Til Christmas -- and Free Shipping

Douglas A. McIntyre

Published: December 17, 2015 6:54 am

Last Updated: January 13, 2020 4:00 pm

Free shipping, which is not really free, for speedy delivery of items sent to reach an address in a day or so has become an essential tool for retailers as people run out of time — with only eight shopping days until Christmas. Some customers may even pay large fees to move their purchases along. Free shipping, for many shoppers, is a myth.

Wal-Mart Stores Inc. (NYSE: WMT) allows customers to shop online and in many cases pick up the item at a Wal-Mart store. It is “free shipping.” with the cost of driving and fetching a gift as well. It is actually just “free ordering.”

The most promoted version of free shipping is on items people want to get to friends or family soon. If an order has a total cost of over $50, Wal-Mart will ship it for free. The delivery time is four to six days. Not much cushion for late shoppers. Wal-Mart offers Standard, Expedited and Rush shipping. Rush shipping can cost hundreds of dollars, based on the size of the order and what it weighs.

As Christmas approaches, retailers slash prices, particularly on items they have not been able to clear from inventory. This year, many of these are items that are meant for cold weather. In much of the country, that weather never came.

And some retailers offer what the customer usually does not know is a loss leader. Get the customer in the door, or online, and perhaps he or she will buy other items on which the retailer has larger margins.

Consumers may buy as many articles as retailers sell. For Wal-Mart, that numbers in the hundreds of thousands. These customers won’t get free shipping in many cases, but the “free shipping” promotion is a means to make consumers believe they can get something for nothing.