I own a brick and mortar business that is in a $25B industry. There is basically only one brand name company selling their products online. There are multiple companies that offer the "order online and pickup in-store" service but only one company will ship the product to your doorstep. My store is expecting to do $1,000,000 in revenue this year, strictly through in-person transactions.
I would LOVE to expand my business online, but the cost to ship my products is extremely prohibitive. To ship one of my $30-$70 products (different quality and price brackets), FedEx calculates around $15. If they order more than one (most transactions are more than one) the shipping costs rise substantially. If a customer orders 4 products, likely around $200, it could cost me up to $90 to ship. I don't think people will pay that shipping cost, and there isn't enough room for me to eat the cost either.
HOWEVER! A company that sells different (although somewhat similar category) of products in the same exact packaging can ship me 3 products for $13. Once I add the 4th product, this company offers me free shipping. Either their profit margins are so large that they can eat a ton of shipping costs, or they have figured out a way to ship these products through FedEx for substantially cheaper than I can.
Am I looking at this wrong, or am I just missing something obvious to get cheaper shipping?