Over a year ago we switched from free delivery on everything, to free delivery over a certain amount. This increased average order size by about 40%, but our volumes dropped a little. We don't want to tamper with this site as its preforming well.
We're planning on lauching a 2nd site that competes purely on price - free delivery on everything. Gives us the freedom to only chose products that are cheap to send. No accounts, no preorders, 2nd class shipping, no freephone sales line etc designed to target the bargain hunters that pass by our main site.
Would be interested to hear if anyone has had experience setting up a 2nd site within the same niche, targeting a different consumer.
Yes have been there done that - had about 10 sites all running over one common back end with different pricing structures - some were setup as white label type sites on behalf of third partys (but we provided content and fulfilment) but 2 main ones were run by us.
To be honest the second site was setup because we purchased a competitor and just wanted their brand so created a site that looked like their old one but powered by our technology.
It works well but I'd go out of your way to make them different as possible - otherwise it soon pops up all over the net the 2 sites are conected and a lot of your sales will flock to whichever has the current best deal - and also you'll find newsgroup discussions wondering what you are playing at running 2 sites with the same product range as if you are untrustworthy!