Free Shipping

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Online retailing continuously becomes more competitive for sellers. This doesn't mean online retailing is less profitable than any other marketplace.

What it does mean that (1) You have to evolve your business model and, (2) you cannot ignore reality.

Reasons for offering free shipping:
- Makes you appear as competitive if not more so than your competitors
- Huge selling call to action improving overall customer experience
- For online retailing free shipping is becoming if not already a virtual requirement.

Why is that most businesses don't understand how to modify their pricing to offer free shipping?

We are not suggesting simply to just not charge shipping costs. Just assume its now a cost of doing business rather than irritating customers with an almost after thought of additional shipping costs on the checkout page which just reduces the overall customer service.

The solution is to modify your product pricing accordingly taking into account:
- Gross Margins on Sales
- Average Product Order Value
- Average # of Products per Order
- Method of Shipping

What's important to note you cannot simply add shipping costs to every sku listed for sale on your site.

Ways to measure if Free Shipping helps your bottom line:
- Total Sales
- Higher Conversion Rates
- Lower Abandoned Carts

Consider the above if you have low conversion rates or abandoned cart issues.

If you would like more information, click here to contact us to discuss.

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