It's a question I'm often asked - Should I offer free shipping? Is that a smart business decision?
Bottom line, it's a good business decision if it helps you earn more money.
Yes, there's also the appreciation from customers, especially women, who love free shipping. But I'm in the business of helping businesses who market to women earn more money.
One reason why you add free shipping is to increase your average order size. Is your average order size $50? Than why not offer free shipping for orders over $55.
Lindiskin Free Shipping Example
Lindiskin is currently running an offer of free shipping for orders over $55. Why $55? Here's what I suspect is the answer - their average order size is probably around $50.
Look at the product price list. See how many products are priced at $25.
Many women feel if you're going to order online, order at least a quantity of two to make it worth your while. So, my guess is many orders come in at $50.
By making the free shipping offer good for orders over $55, there's a good likelihood that she will buy more than usual in order to get the free shipping.
Look at your average order amounts and past buying habits of your customers. Is there a price minimum for free shipping that could trigger her to increase her average order size and buy more from you than she normally would?
Check your data and do some testing.
Remember, free shipping is especially effective when marketing to women online.
Hey, Holly,
Great post, but what do you make of programs like Amazon Prime?
I know that I'll often check to see whether Amazon Prime covers a product before ordering it from another site, just because I want my free 2-day shipping.
Since LindiSkin sells consumable products, do you think they might do better with some kind of free-shipping for auto-shipped orders type thing, where signing up for 6 months of product to be shipped and billed on a monthly basis would give you free 2-day shipping or something?
What are your thoughts on that?
- Jeff
Posted by: Jeff | July 06, 2009 at 03:33 PM
Great points Jeff.
I think Amazon Prime is brilliant. People simply love getting stuff right away. And, as in your case, it drives customers to buy from Amazon vs. somewhere else.
For Lindiskin - yes, I think adding free shipping to auto-shipped orders is a terrfiic idea, especially expedited shipping.
Great thinking as usual Jeff.
Posted by: Holly Buchanan | July 08, 2009 at 12:51 PM
It's always a pleasure to read your posts.like many women,i too believe that one should order something substantial online.Thanks for the post.
Posted by: website design | October 16, 2009 at 05:19 AM
By making the free shipping offer good for orders over $55, there's a good likelihood that she will buy more than usual in order to get the free shipping.
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Free shipping can make the difference between a sale and no sale.
Posted by: john emoticons | June 13, 2010 at 01:32 PM
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