Consumers are wiser to the true costs of shipping than retailers think,' according to Jupiter.
According to the survey, almost two-thirds of consumers have been deterred from completing online purchases because of shipping and handling charges. At the same time, the New York City-based research firm said 45 percent of online and catalog merchants reported losing money on shipping and handling. Jupiter cautioned that companies looking to profit from order fulfillment run the risk of sparking customer distrust because three-quarters of Web shoppers factor in shipping costs before conducting an online transaction. However, the long-term interest of the retailer is best served if its customers trust it. Moreover, the study said e-tailers need to revamp the methods by which they calculate these charges.