Why Is Amazon Shipping So Expensive? (9 Reasons Why)

Having an Amazon Prime account will enable you to get free shipping. You will also be eligible for fast free shipping in a few days, as well as a free trial membership to Amazon’s Audible service.

In 2016, the number of Amazon Prime members went from 5 million to over 20 million. According to the Washington Post, that means that Amazon is spending more than $100 million a week on shipping.

Amazon’s shipping fees are always high, but you don’t have to get in line to complain about it!

Why Is Amazon Shipping So Expensive In 2022?

Amazon’s shipping prices are affected by the speed at which products are shipped, the destination, and the number of third-party sellers, and Amazon’s advertising efforts also drive up shipping costs.

To find out the things that increase Amazon’s shipping costs, keep on reading!

1. Third-Party Sellers Adjust Shipping Charges

Not all products sold on the Amazon website are provided by Amazon. The third-party sellers who sell their products on Amazon’s website are allowed to make money as long as they meet certain conditions.

People who sell their products on the Internet do not have to worry about shipping cost. They use one of the many shipping services available for free.

Usually shipping charges are pretty expensive when the package is shipped from the United States.

2. A Potential Marketing Strategy By Amazon

Amazon tries to make money by selling low priced products but charges more for shipping and takes more of your money in the process.

In order to make profits that Amazon sells items online they need to make as much profit per item as possible. One way to do that is to keep their prices low.

3. The Number Of Amazon Prime Members

When Amazon Prime members pay less money for shipping than non-Prime members, it causes the shipping costs to increase for non-Prime members.

The number of Prime members and their spending patterns are increasing substantially, and the company is doing well.

Amazon has seen a steady rise in the number of Prime members.

So in order to make up for the massive loss in shipping expenses that non-Prime customers shopping on the site incur, Amazon has to mark up the cost of shipping for Prime members shopping on the site.

4. Amazon Is Making More Investments

This week Amazon announced a new venture called Fulfillment by Amazon (FBA).

For example, Amazon invested heavily in its online video service IMDb, it expanded features for Prime members, and pushed its warehouses to meet customer demand.

The huge profits allow them to pay for massive amounts of employee’s salaries, and large amounts of stock compensation.

5. Spending More Money On Advertisements

The high shipping costs can be seen as, on the one hand, a direct reflection of the massive advertising budget that Amazon invests in the countries it operates in, which in turn results in increased shipping costs.

On the other hand, a possible explanation for the increase in shipping costs is also that Amazon has also increased its marketing budgets.

It is a company that has been investing the most in advertising and other marketing in order to inform current and potential customers about its environmental sustainability and features that set the company apart.

Some people believe that Amazon uses shipping costs to make sure it doesn’t make too much money from its ads, so it raises them to make more money from its customers.

6. More Third-Party Sellers On Amazon

In 2020, third party sellers made more than half of Amazon’s total gross merchandise volume.

Third party sellers can dictate the amount they charge for shipping, which can be pretty steep depending where the item comes from.

Even if you are an Amazon Prime member, you may still have to pay for shipping even if the seller offers free shipping (unless the seller offers free shipping for every item of a certain category).

So the number of products that have higher shipping rates increase when more third-party sellers become involved on Amazon.

7. Amazon Is Improving Its Shipping Network

Amazon has now moved its own distribution center from Seattle to the
Port of Los Angeles, part of an aggressive plan to ensure that a
customer gets their packages fast.

To the average layman, it might look like Amazon is just shifting its warehouse there to be closer to the shipping distribution centre. But actually, it is moving its own distribution centre there with the intention of providing a faster shipping service.

Amazon is investing money in the shipping network. This includes more warehouses, new technology and more people. These people are shipping things to customers.

Amazon will decrease its shipping costs in order to improve the efficiency of its network, and it will decrease its shipping costs by investing the money.

8. Certain Destinations Raise Amazon Shipping Costs

When an Amazon package is shipped to an address that is far away, the company is going to add a lot of shipping tacked onto the cost of the product.

For example, in my city, I get free standard shipping (on all purchases, not just Amazon), but if I live in a rural area or a small city, I have to pay $150.00 for standard shipping.

So, do you think that a free shipping option for Prime will make Amazon the winner against other players?
Amazon has also announced that they are going to be offering a free shipping option for orders placed on Amazon through May 3rd.

Amazon is aiming to make shipping charges the same for all customers no matter if they live in the US or anywhere around the world.

9. Delivery Speed Affects Amazon’s Shipping Prices

There are many different options when you’re selecting how fast you want your Amazon order delivered. You can choose from standard shipping, which will ship your order in five to seven business days, or you can choose from faster shipping, which ships your order between one and two business days.

The new app also integrates with Prime, allowing users to scan the barcode of eligible items (see photo) and get Prime-rate shipping.

The quicker you want your package delivered, the more expensive shipping will be.
You can go ahead and click the button below to submit your order.

Looking to know more about Amazon s services, you can also see our related posts: how late does Amazon deliver and what is Amazon Woot.

Conclusion

If there are any fees on the product, you’ll be charged a flat fee, and a portion of the fee covers the actual shipping costs.
The amount you pay is typically based on the size and weight of the item.
Amazon Prime membership is a perk that comes with Prime shipping.

Amazon has made significant investments in shipping to help with their supply chain and shipping network. Amazon’s investments are a way to advertise and get more customer reviews on their site.

I have a hard time believing that you can raise the shipping cost by $2.