Shipping directly to consumers is more expensive and energy consuming than shipping to a single location (e.g. a brick and mortar store).

However what this article is neglecting is that brick and mortar stores are built where people go to them. The land and building cost money, which the store typically pays for through a lease.

So, yes, shipping isn't free. But having products sit on a shelf in a store in the city isn't free either. Especially if said products depreciate in value and aren't sold quickly.

Basically, look at why RadioShack went bankrupt to see how this can backfire for brick and mortar.

Also, "Free" shipping from China isn't. The cost of shipping from China is subsidized by other countries. I remember reading that the price to ship something from China to your house in the US, USPS gets paid less than it costs them to ship.

Shipping rates from China are up for review soon, and the industry is expecting their rates to be re-adjusted, after which ordering from China will get a lot more expensive...