Increasing Shipping Charges To Make A Profit

from the sneaky-profits dept

Apparently some e-commerce companies are increasing their shipping charges in order to make more money. The article mostly talks about U-bid who seems to have a habit of doubling the actual weight of the item when they determine shipping fees. I don't know for sure, but I remember talking with someone who said that there are serious tax and/or revenue consequences if you do that. We were trying to figure out if that was a way to increase profits for an e-commerce company, and apparently he knew of some law that made it hard to actually profit off increased shipping fees - but maybe he was just making it all up.

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