olimits7 - 2:34 pm on Jun 27, 2011 (gmt 0)
I was actually thinking about the topic of "free shipping" the other day, and there is one issue I see with this that I didn't realize before; looking at it from the merchant side.
For non-defective and defective returns, I only refund the item price minus any shipping costs. However, the issue I see with offering "free shipping" is if I include the shipping cost into the item price I would end up refunding my customer the shipping cost along with the item price.
This is why I like keeping the item and shipping price as 2 different lines that make up the order total amount; this way I still receive the item back which I can resell again, but not take a hit on the shipping cost which are charges I already incurred and won't get a refund on.