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    Free shipping -- the devil's in the details

    Consumer Reports News: August 04, 2009 12:27 PM

    There's no doubt that the promise of free shipping is a powerful marketing tool. That's why so many merchants dangle it as an incentive. Last holiday season alone, around 80 percent of retailers offered the perk, albeit with conditions like  a minimum purchase requirement. That's reasonable enough.

    But lately I've noticed that many companies don't spell out the terms and conditions as clearly as they could or they'll  place an asterisk near the giant words "FREE SHIPPING" in type so tiny that you're apt to overlook it. Or they'll apply different shipping rates to different customers.

    Case in point. The other day, a colleague logged onto Drugstore.com to buy some vitamins, which cost $22.40. A box popped up on her computer screen, saying that if she added another $2.60 to her order, she'd qualify for free standard shipping, a $6 value.

    That seemed like a no-brainer, so she bought a couple of bottles of supplements, which pushed the total above the magic $25 amount. As she proceeded to check out, she was prompted to log in with her e-mail address and password. When she did so, a new box popped up, saying that if she added another twenty-something dollars to her order, shipping would be free. What gives?

    Puzzled, she called the toll-free help line, and a customer rep explained that

    when she first placed her order, without logging in, it assumed she was a new

    customer. The $25 purchase requirement for free shipping applies only to new customers, not returning ones. Returning customers must spend twice as much to qualify for free shipping. 

    Though companies like Drugstore.com are entitled to run their businesses however they see fit, I'm inclined to shop elsewhere when merchants apply a two-tier price structure. It's not the same as applying a coupon or promotion code to get a discount. 

    My colleague told the customer-service rep that it seemed like a poor practice to favor new customers over repeat business, but the rep assured her Drugstore.com made up for it in other ways,

    for instance, sending e-mails with other deals to existing customers. My colleague said she didn't recall receiving any such money-saving offers, just e-mails listing random items on sale.

    Personally, I wish more merchants would follow Amazon.com's clearcut shipping policy. If you buy directly from Amazon itself, you're eligible for free, supersaver shipping on most orders of $25 or more. They spell out the fine print clearly and succinctly, and there's no ambiguity. 


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