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Free Delivery Option May Be An Opportunity To Earn Additional Profit

 9:20 am on May 4, 2012 (gmt 0)

I hear so many webmasters complaining about having to offer free delivery.

Each and every one that I spoke to hadn't thought that they could upsell a fast delivery option.

Offer free delivery on a slow delivery service, but if people really want the stuff now they will pay the extra for faster delivery. Think positive, make it a profit opportunity!



 1:16 pm on May 4, 2012 (gmt 0)

How would this idea work in an International scenario?

Our website crosses borders, and we actively ship from the USA to 28 countries, and it's a substantial percentage of our business.

Our products range from small, cheap widgets to heavy, expensive widgets. It's not uncommon for the cost of international shipping to exceed the cost of the widgets.

Your ideas are great for intra-country shipping, but how do you implement this, without knowing the ship-to address of the visitor?


 1:54 pm on May 4, 2012 (gmt 0)

True, it won't work in every instance.

You could work on the basis that 'standard delivery' is only $X and offer increased levels based on speed.


 2:18 pm on May 4, 2012 (gmt 0)

My one client offers free (US only) delivery on purchases over $50 just to compete with all the other companies offering free delivery. There are some limitations though. She also offers free upgrades from Parcel Post to Priority Mail (again, US only) which has proven to be cheaper than mailing parcel post. Surprisingly, often priority mail is a little less than parcel post plus the post office provides free boxes. On average, she figures she is saving about 60 cents an order and the customer gets their order faster. This is one time it is truly a win win situation. Of course, this does not work for everyone depending on the size and weight of the product.



 10:16 pm on May 4, 2012 (gmt 0)

if you're offering free shipping, you should ALWAYS offer some form of upgrading shipping. many customers love to pay for upgraded shipping. if you tell them they'll get it 2 days faster for $5 (as an example), a good % will do it. i've tested this. intentionally delay free shipping orders by a couple days (or more, or less), and allow those that pay the $5 upgrade to have their order processed faster. basically, for $5 it puts their order to the front of the line. i've seen quite a few ecommerce stores utilize this strategy: including some rather big retailers.

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