So digikey offers free shipping on orders over $100 to europe (where I live). Great! So, I'm in the US for holidays and I figure, I should probably buy it here, that way I don't need to deal with customs and shipping should be faster. WRONG!! it costs me over $20 in shipping!!! So I talked to two sales representatives and they have confirmed this! Buying stuff on digikey and having it shipped to europe is cheaper than having it shipped to the US! (assuming no issues at customs and an order over $100) Where the heck is the logic in that or am I missing something? Why would anyone inside the US use digikey then? I have also found the prices of Mouser and Farnell to be better. The only thing I can think of is that they have a large selection but generally I find everything on Farnell and Mouser.
I really don't understand the complaint. Shipping isn't free anywhere since all shipping companies charge for their services. Digikey may choose to subsidize the cost of shipping to Europe for whatever reason, but that doesn't mean that charging for a service which costs money to provide is somehow unreasonable as it appears you feel.
As for why anyone would use Digikey - they are by far the best distributor, IMO. You can order by 9pm EST and it's gauranteed to ship same-day. They have a lot of stock, and they are usually the cheapest provider on most parts. Off the top of my head, compare LXM2-PL01-0000 or ATTINY13A. Digikey is cheapest. Mouser is equal on some stuff, and on a few parts Avent or Arrow may be lower - but it's rare. I keep spreadsheets of all my BOM's with prices from all the distributors, and the vast majority of the time, Digikey is cheapest on most stuff - with Mouser cheaper on one or two items.
By the way - Mouser, Newark, Avnet, Arrow, Future and all other distributors charge to ship also, so Digikey's shipping fee isn't a detraction at all. And $20 is quite a lot - since Digikey charges actual rates, it must be either a 3-day or 2-day shipment, or a package weighing several kilos - which would probably be quite an expensive lot of electronics. And in such cases, who cares about $20 for shipping when you're spending hundreds or even a couple thousand on the parts, especially if all other sellers also charge for shipping?