<p>I have often gotten free “SHIPPING” but still pay a fixed “handling” charge!! I am pretty used to paying some type of extra charge on an order (somewhat offset by no sales tax) and try to decide if I want the item at the all-in cost. </p>
<p>I have also seen online vendors operate a business model that seems to be to sell stuff at their cost (or even less) and add on very large shipping and handling fees. Consumers get very angry when they see the large fees, thinking they were suckered by the low low prices. But I wonder if this business model has tax advantages.</p>