Let’s just clear this up.
No it doesn’t. It’s a marketing ploy. Sorry to burst your bubble. But did you honestly think that the Xbox that you bought from Lazada or that Maxi Dress that you bought from Poplook could make its way to you without incurring ANY additional cost? If you live in East Malaysia, did you honestly think that the goods that you bought could swim itself across the South China Sea?
Some online retailers will offer Free Delivery but it usually comes with a minimum spend of say RM50 or RM100. How did they arrive at this magical free delivery number?
Here is some simple math for you to think about. If they know that their Average Order Value (AOV) is say RM150, and their Average Delivery Cost (ADC) is RM10, then if they offered Free Delivery for orders with a minimum spend of RM100, their delivery cost makes up 10% of that (which is still very reasonable for an online retailer). This is how the delivery cost is being factored in.
In Cantonese, there is saying which goes ‘Lai Siong Pou Har’ which literally translates to ‘pull up, fill bottom’. What it really means is that retailers will lose some money on some deliveries but make it back up with other higher value orders.
However, you should take advantage of special sales such as MYCYBERSALE, 11.11 Sale, Black Friday, Cyber Monday, 12.12 Sale etc as a lot of retailers do promotions at below their cost, especially the bigger ones with deeper pockets i.e. more investors’ money to burn.
Ps. Whilst free shipping does not exist, free cashback does! Sign-up here to receive RM10 free bonus cashback if you don’t already have a MilkADeal account. Valid until 31 December 2015 only.