Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Free Shipping Makes You Spend More
In this episode of Behavioral Economics with Fexingo, Lucas and Luna peel back the psychology behind one of e-commerce's most powerful triggers: the free shipping threshold. Using a concrete example from a well-known online retailer, they explain how a simple 'spend $35 more for free shipping' offer can quietly inflate basket size by 20 to 30 percent. The conversation traces the roots of this phenomenon to the behavioral economics concept of transaction utility, and shows why the pain of paying for shipping feels disproportionately worse than paying for the product itself. They…
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