Online retailers cannot risk raising shipping prices. The sluggish economy combined with high fuel prices are hurting Americans financially but Amazon.com and other online retailers are unlikely to increase shipping costs out of fear of losing customers.
Contracts with shippers may protect Amazon and some others as companies look for ways to cut costs. Companies such as Amazon and Overstock depend on low or free shipping to attract business.
Free shipping has helped
Amazon has been able to continue to offer its free and discounted shipping because it locked in its transport rates before oil prices rose dramatically.
The strong desire to avoid higher shipping prices will drive more Amazon customers to join Amazon Prime which allows customers to pay a flat yearly fee of $79 for unlimited shipping or customers will buy more items to qualify for Super Saving shipping which requires a minimum $25 order.
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