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Free Shipping Crucial to Online Shopping Success

One of the most staggering statistics from the 20 internet marketing statistics I posted about a couple days ago is that 61% of online consumers are more likely to shop online with a retailer that offers free shipping coupons than one that doesn’t.

This statistic should be a wake-up call to retailers that don’t offer any type of free shipping. Those who aren’t offering free shipping coupons might might want to consider increasing their prices slightly so that they can offer free shipping to their shoppers.

Last week I asked my sister-in-law what she looks for when shopping online. She quickly responded, “I like to shop at places that have free shipping.”

5 types of free shipping offers

There are 5 different types of free shipping offers that online retailers offer to shoppers.

1. Free shipping on all purchases.
Only retailers that sell items that cost more than shipping can get away with this.

2. Free shipping on purchases of $XX or more
This is the most common type of free shipping because it allows the retailer to make enough profit to cover the cost of shipping. I really like this type of free shipping because it encourages shoppers to spend more. If a shoppers wants to buy something that is $10 less than the amount needed to get free shipping, they will usually buy another item to reach that magic number.

3. Free shipping on certain items
Since most retailers can’t afford to pay for shipping on large items like a refrigerator or big screen TV, they offer free shipping on just the smaller items they sell. You can see this with companies like Home Depot and Best Buy.

4. Flat shipping rate
Retailers that can’t afford to offer free shipping should consider offering a flat shipping rate. Shoppers feel like they are getting a discount, especially when they buy a lot of stuff. There are never any surprises during checkout because the shopper knows in advance how much shipping will be. Two retailers that have had success with a flat shipping rate are The Gap and Old Navy. The Gap offers $6 shipping on all purchases and Old Navy offer $5 shipping on all purchases.

5. Negative free shipping
Negative free shipping is a shoppers dream. The retailer takes a certain amount of money off of the order for the privilege of shipping to you. I recommend using negative free shipping only for special promotions. An example of negative free shipping can be seen at endless.com. They have negative $5 overnight free shipping.

Over half the Commission Junction retailers I work with have some type of free shipping coupons. Retailers that don’t offer free shipping should consider making the necessary changes to be able to offer it because shoppers are beginning to expect it.


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       Posted in: Promotion, Research
     by: Luke Knowles
Your Thoughts? [ 1 ]      
November 7, 2007       
 
 
   
  Comments (1)  
 

[...] to shop online with a retailer that offers free shipping. The guys over at Virtual Marketing have some interesting ideas about ways to handle this preference. addthis_url = [...]

       The Cart Blog » Blog Archive » Forrester: Ship Free or Die November 20, 2007        
 
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