We are a discounter and, like many online retailers, discount the list price of what we sell. So we buy at wholesale, chop off some of the list price and end up with a very narrow margin to pay for advertising, credit card processing and (hopefully) profit.
We have been trying to charge just enough on our shipping and handling charge to cover actual freight and drop ship pick and pack charges.
It used to work.
But lately I wonder if this business model is fast becoming obsolete for moderately priced goods.
The actual freight charges have skyrocketed.
It's a viscous cyle, freight charges go up, we pass them on, sales go down, etc...
We know we aren't the only ones in this squeeze.
How are you all handling this?

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