You can visit a local retail store to buy it for $199 with no shipping costs.

Though now with the 32GB at the old 16GB price it's an even better deal, advertised at $249 or $275 in the end, either way it's a great price.

Edit: Wait, you say the 8GB $199 is close to $250 after shipping, but the 16GB is $275 including shipping? Which is it? Either shipping is close to $50 or $25 exactly. Seems like you are trying to stretch the facts to justify your purchase.

I hope he explains, I am having a hard time just now trying to find how someone would be able to spend $50 on shipping unless they were wanting to overnight it.

I did notice that as of today 10/29 Nexus 7 prices/configurations have been updated, so it is now 16GB for $199 or the new 32GB for $249. The 8GB model is discontinued.

When I bought it (at launch) the 8GB model was just under $250 including shipping, and the 16GB model was $275. (I checked my receipt.) The prices have changed somewhat since then.

In any event, the $199 price struck me as highly misleading at the time.

I have the 8 GB Nexus 7 and I bought it at launch. I just checked and the total price I paid (device + shipping + tax) came to $230.03. I don't remember which delivery method I chose, perhaps you chose an expedited shipping option?

$230 is closer to $250 than $200. Memory plays tricks so probably that was the figure I baulked at.

And note that I paid $26.44 shipping + tax on a $249 base price, so somehow my shipping was significantly cheaper than yours.

Where does the extra $50 go for shipping?

I don't recall the details. It's not just shipping -- unlike Amazon, Google actually charges sales tax (not a criticism of Google btw -- I think Amazon's sales tax advantage is horribly unfair to other retailers). For the model I eventually did buy (16GB, which was at that time the top-of-the-line) I paid about $25 in shipping and tax.

What I can verify is that I paid $275.44 for a "$249" 16GB Nexus 7 whereas a Kindle Fire HD would actually be $199.

Google (nor does Amazon) "charge" sales tax. They collect sales tax on behalf of the state.

Like other businesses, Amazon collects sales tax in states where it has a physical presence (which is a probably a different list of states than for Google). For example, New York State residents pay sales tax on Amazon.

Thanks for clarifying that.

It's amazing that a complete computer with screen and a multitouch interface sells for $275 or $199. $200 is how much a couple people can easily spend in one day at Disneyworld, or the price of a night at a decent hotel and a couple restaurant meals.