The facts and fictions of online shipping costs

Then there are those times when you need to make sure your package gets to its destination before the holidays - a day late makes it a wasted effort. So you fork over the few extra dollars to guarantee the delivery date - but did you really need to do that?

Countless online shoppers are asking themselves whether paying a premium for express shipping and handling fees is really necessary. After all, there have been many times when they've ordered an item for the "week-to-10-day" delivery and received it within three business days without paying the premium.

So what gives? You might think the retailer is charging extra for a service you don't need, and that it's all a sales ploy to hit unsuspecting consumers with extra charges just to beef up profit margins.

However, shipping and handling is a growing expense for retailers, and in these trying economic times especially, it's hitting their bottom lines more than ever.

"We work with many major retailers and can tell you that the vast majority lose money on shipping, especially during the holidays," Fiona Dias, executive vice president of partner strategy and marketing for GSI Commerce, a specialist in online business services, told the E-Commerce Times.

Read the full article here.