as a reasonably smart individual, when doing price comparison shopping, you would obviously compare the final out of pocket cost, selling price + shipping + tax
I'm not sure how this responds to my comment? All I said was that "free shipping" is exactly the same thing as saying "I estimate that shipping is generally below $X, but if it turns out to cost more, I will eat that cost".
the imply was that some retailers will jack up the cost of an item in order to provide free shipping. I'm just pointing out that doesn't really work unless the buyer is stupid and uniquely drawn to the free shipping offer.