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Free Freight or Lower Prices

by cldnails
6 replies
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I've been experimenting with different price points and while I've been marginally successful, I'm hoping to take that next step.

Currently I price my items at a flat % mark up and then charge a flat shipping fee for every item. This flat fee covers for UPS Ground to any location in the continental US.

Are there some specific studies or opinions on the benefit of offering free freight on all my items and simply mark up each item based on what I would have charged on freight before?

My customers don't abandon carts very often, and having the freight cooked in lets me adjust prices at a slower pace during price increases. Kind of a buffer. Any advice is really appreciated.
#free #freight #lower #prices
  • Profile picture of the author CynthiaAngel
    Have you tried a free promotion such as free shipping "for today only", maybe on specific products, then raise the prices of those products and see what happens?

    I think you have to continue testing until you find a sweet spot - that is the only way .


    I personally do a combination of flat fee and then after 10 pounds I charge .85 for each additional pound. I sell a combination of really really heavy products that cost me about $30 to ship, to light products that cost me $2 to ship. So I had to find a sweet spot, and am still looking for that sweet spot. If I did free shipping I would be out of business.


    There are some many articles and studies that have shown free shipping increases sales, I have listed one of those below. However, the bottom line is, if you cannot afford to do free shipping then don't do it because at the end of the day is not how much sales but how much profit you make.

    The Ultimate Guide to Increasing Ecommerce Conversion Rates.
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    • Profile picture of the author cldnails
      Originally Posted by CynthiaAngel View Post

      Have you tried a free promotion such as free shipping "for today only", maybe on specific products, then raise the prices of those products and see what happens?

      I think you have to continue testing until you find a sweet spot - that is the only way .


      I personally do a combination of flat fee and then after 10 pounds I charge .85 for each additional pound. I sell a combination of really really heavy products that cost me about $30 to ship, to light products that cost me $2 to ship. So I had to find a sweet spot, and am still looking for that sweet spot. If I did free shipping I would be out of business.


      There are some many articles and studies that have shown free shipping increases sales, I have listed one of those below. However, the bottom line is, if you cannot afford to do free shipping then don't do it because at the end of the day is not how much sales but how much profit you make.

      The Ultimate Guide to Increasing Ecommerce Conversion Rates.
      I have not tried the temporary promotion, mainly because of the work put into updating all of my feeds that go to various shopping sites.

      Good idea and I might try some select item free shipping and see where it goes. Worse case, go back to the way it was I suppose. Just looking for that next edge.

      Thank you for the advice and link!
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  • Profile picture of the author wakeforce139
    I didn't read the entire thread as I'm on a time crunch so if this was said I apologize. First I would suggest checking your market to see what others are doing. This will help set the stage to at least see what the current standard is (you don't need to abide by this but it's good for reference). One thing I can say with certainty is that free shipping is becoming more and more expected. So it's good you are figuring out this piece of your equation now.

    I did notice Onlinestorehelp mention having 2 different thresholds. This is what I do as well. I have a standard flat rate delivery fee for products that go UPS ground ($4.99) and all UPS ground orders over $99 ship free. Products that are larger are subject to a higher threshold and I charge more for their delivery. If the second threshold doesn't cover margin on a particular product I will increase the base price.
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  • Profile picture of the author dave_hermansen
    We've found that you typically do the best (conversion wise) when you see what the top 2-3 retailers in your space are doing and follow suit. They are doing it the way they are doing it for a reason, so you may as well bypass the "learning curve" and just match them.

    That said, once you are getting traffic and sales and you're in the "maximizing profits" stage, shipping is something you can certainly play around with to see how it affects conversions.
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  • Profile picture of the author iove234lifee
    Very good points made, I actually learned quite a bit from what others posted.
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