spikey - 6:49 pm on Jun 25, 2007 (gmt 0)
Free shipping has become part of our brand identity. Our customers love it. We've had to do a *lot* of modeling to get it right though. We had to drop or bundle low price point items. And, obviously, it's only as good as you market it. We offer free 2-day at a certain basket size and free international (to some countries) at a certain baseket size too.
We're currently testing free 2-day shipping, but I think the incremental gain is much smaller and it has a lot of negatives that need to be worked out too (like the lack of upwards pressure on basket size).