Thank you so much.

but i am confused on how come companies like Boohoo charge only $5 for delivery, they are in SA and i am in sydney (i ordered clothes from them). They use Australia post and i get the item only within 3 days.

From Boohoo.com

---

@muna.sh wrote:

 

 

 

but i am confused on how come companies like Boohoo charge only $5 for delivery, they are in SA and i am in sydney (i ordered clothes from them). They use Australia post and i get the item only within 3 days.

 

 

 

 

---

What they charge and what they pay will be two very different things, as you can see by the fact that they charge $0 for orders over $40 (they would obviously still be paying to send out orders).

Some companies will load item prices with a portion of postage costs and charge a lower P&H amount purely for the sake of impression. Cheap or free postage has the illusion of a good deal, and having a min. spend threshold for free post encourages people to spend more, so if as an (arbitrary) example, $5 of every item price is actually accounting for postage costs, someone buying two $20 items to get free post has actually paid $10 post. (That is not to say that there is no such thing as free - to the customer - postage, but most, if not all, businesses will account for that cost one way or another). 

Dang it... I ran out of time to edit my post... 

I was going to amend the "paid $10 for postage" bit, because it's not strictly true or accurate.

What I should have said is that when a customer purchases multiple items, it reduces some of the fixed expenses a business has, so it's easier to accomodate postage costs without charging extra for it. That's actually how my business model works, in part. I have a relatively low flat rate that doesn't change no matter how many items a customer buys. My item prices don't actually contain an amount specifically for postage, but there are fixed fees that only apply once to an order, so I pay the extra postage for larger orders because I've saved expenses in other areas.

thanks thats what i actually thought that they incorporate with some of the postage pricing within the item cost

thank you, yes i get that 🙂
I appreciate your help!