How does Woot.com do $5 flat shipping??

**RamanSidhu** · 07-18-2010 02:52 PM

How in the world does Woot.com always have $5 flat shipping??? Whether is a pencil or a mattress its still $5...Do they eat the cost? Do they add it into each item they sell?

What do you guys think??

**Machiavelli** · 07-19-2010 04:03 AM

A deal with the devil, perhaps?

**eab** · 07-20-2010 11:15 PM

I would speculate it is built into their price, and their business model. They are obv. not only paying 5$ for every item. Also they probably get discounts for volume.

**Gator** · 07-23-2010 05:17 PM

Interesting question. Why don't you ask how do some sites manage to offer FREE shipping

Of course they do not pay 0$$ to shipping company

**DangerousCurves** · 07-27-2010 10:58 PM

For the most part it's a cost / loss that is factored into their overhead, and a lead generator that gives customers an extra reason to buy from them vs. their competitors. The loss is likely figured into the margins of larger items, and smaller items will probably break even on the $5 charge. I offer free shipping worldwide on all orders for my business, which is a great sales generator. We eat the cost on the theory that our customers will shop with us more often, generating enough sales margin to offset the loss. Besides, the shipping loss is tax deductible, so it will also help to offset your profits at the end of the year. The program has worked out great in our case. The cheap and often free shipping option really starting becoming a factor when the economy tanked.. You've gotta do whatever you can to keep your customers happy.. and to them, cheap or free shipping is a huge plus.

Larry
Dangerous Curves

**koercive** · 07-28-2010 01:55 AM

I'd say a good chunk of the items on woot cost them less than $5 to ship. A lot of these items are overstock bought in bulk.

**KH_Global** · 07-28-2010 02:11 AM

Maybe it's their business model.

**lizaadams** · 07-29-2010 09:50 AM

You'd be surprised on the discounts you can get when shipping a lot. The more you ship, the less it costs. And even if they're losing a little on some items, they're gaining on others!

**bousmama** · 07-29-2010 10:33 AM

I was wondering the same thing, I have been looking for a dropshipper to sell a specific product and while I have found the product at one site, a competitor is selling the same product on ebay for free shipping and 0 profit margin. I can only guess they are using a different drop shipper.