When do you choose to offer free shipping

[Luxoria]

Hi, I know this question is rather subjective and the answer depends on many many factors but I am kind of curious to know other business operator's thoughts on how they decided or declined to go with free shipping.

I read some stores have a shipping discount of say 20% but they only allow the customers to see only the 10% discounted prices and the extra income from that left over 10% helps balance out the cost of offering free shipping.

Now, I guess the whole point of free shipping is to have your customers buy extra products or for the perception of convenience and savings.

Would anyone like to throw some real world math out here for me to check out. I am thinking say if my average order is $65 and I offer free shipping at $100 order total, that gives me an extra $35+ of gross sales. However, the shipping cost is say an easy $10(+), but I pay %50 of the item's retail price for inventory... $35 - 50% - $10 = $7.5 net. Then there's the extra time with larger orders, more shipping materials, etc.

AS you can see I am just starting out so I am ignorant of live operations and such.

tyty

[jwolthuis]

Keep in mind that the Internet attracts a worldwide audience from 190+ countries around the globe, so any free-shipping offer needs to have an asterisk with a list of disclaimers. Like, "only applies to customers located in my country, excludes territories, military mail", etc.

[Luxoria]

Good point. I basically only see it either from the US to the lower 48 states or from China to the US.

[gpilling]

free shipping works fine if you have only 5 pound boxes - the cost to ship UPS will be just over $10 anywhere in the 48 states. When you get to heavy items and bulky items it gets much different. I have been selling an item that is 72x24x10inches and weighs 120 lbs. The cost to ship was always at least $100 and up to $140. That price gap makes 'free' shipping hard to pull off.

[jwhansen]

In my industry, almost everything is shipped free, unless it goes LTL. This really sucks, because it takes almost all the profit. eBay is the worst. They make more money than I do on things b/c of free shipping. If you don't offer it too though, then no sales.......

[bwnbwn]

jwhansen question if it eats up all the profit why do it. Free shipping is an option for me but I would need to jack up the cost of the products to cover the cost of the shipping, and that would in the long run cost the customer more if they ordered multiple items.

I am not in this business to say hey I shipped 50 orders today and made 20 bucks. Numbers mean nothing to me it is what I make at the end of the day that counts.

There are many in my nitch that offer free shipping over 75.00, but to me it makes no sense just to have volume and no profit.

[jwolthuis]

bwn makes some good points. Reminds me of a merchant I once knew who said, "we lose money on every order, but make it up in volume".

[Luxoria]

You're talking about Yogi Berra right? "I never said most of the things I said. "

Perhaps what he might of ment was he looses money on small orders but makes up on orders which are large. IDK, assumptions, oh my.

[haiwin]

it depends on your profit.
if your profit is very high ,i think free shipping available even for one item
for me, i offer free shipping if one buyer buy at least 5 silk ties

[Propools]

FREE SHIPPING - Hah, Nothing is free anymore.

This is our motto - "FREE SHIPPING - Others Charge, We Don't Ever*" This is an icon which is clickable. It takes you to a page which shows this

All Pro Pools pricing INCLUDES normal ground delivery within the 48 contiguous states. There are NO hidden or surprise shipping/freight charges... EVER. Shipment of above ground pools, Inground pools and onground pools are delivered by "common carrier".

Oother Popular Sites Charge Additional Money For:
Shipping and Handling .... WE DON'T EVER
For West Coast Delivery.... WE DON'T EVER
Residential Delivery.... WE DON'T EVER

The Price You See is the Only Price You'll Ever Pay

All deliveries are curbside for customer unloading. Pro Pools' responsibility with respect to shipments made by common carrier ends with the issues of the bill of lading. Any damages or shortages should be noted on the receiving freight bill and filed with the delivering carrier by the homeowner. Inspect all cartons and note any possible damage on the freight bill prior to signing for receipt of the products. Then we can give priority to and act on your behalf with the freight company.

Shipping & Deliveries

All deliveries are curbside.

Inspect all product shipments and report any damages or shortages.

•Inspect all cartons and note any damage or possible concealed damage on the freight bill prior to signing for receipt of or receiving the products. This will allow you the chance to refuse the item(s) if damaged or defective. Should you not have time to inspect; please sign the receipt as 'uninspected'' instead of your signature. By applying your signature, you are signing a document stating that you have inspected the item(s) and it (they) are in good condition. In this case, the claim must be filed by you with the freight company as we will have no recourse once an item(s) is/are signed for.

•Should the product shipment be signed for and no notes are made indicating any possible or real damages, then the consumer of the product(s) becomes the legal owner of the merchandise and Abovegroundpool.net, the seller, can no longer file a damage claim with the freight carrier and therefore any damage(s) would be yours to claim with the freight carrier, should any be realized.

•Should product shipment damage(s) be noted on the freight bill, be certain the delivery driver signs the same receipt you do and you retain a copy of the signed documentation for your records.

•propools.com's responsibility with respect to shipments made by common carrier ends with the issues of the bill of lading.

All shipments are scheduled for residential delivery; however we will not pay for, be responsible for or reimburse for any additional residential delivery fees in which a truck with a lift gate is or has been requested by the receiver. Shipments which arrive by common carrier are to be unloaded by the receiver. (Concerning Pool Shipments: It is possible to remove any banding or securing measures from the shipment and unload the components one at a time.)

WE RECOMMEND NOT SCHEDULING any installation or assembly of the purchased product until the shipment has been inspected and/or the order fully and completely received in good condition.

An order which is picked up by the purchaser and/or agent of the purchaser; such shall receive the product as being received in new condition and any possible transit damage, freight charges, port charges, vat chartes, duty, etc. is the sole responsibility of the purchaser.

"FREE SHIPPING " is based upon our already having the estimated shipping delivery costs which would be directerd at us, adjusted into the sale price of the product. It does not imply in any way, that we are not charged for shipping products. In no way is shipping; free, as we do have an estimated amount of shipping costs built into the sales price of the product. Which is why we can wholeheartedly say, "The Price You See is the Price You Pay". Any/All returns or refunds of products/goods purchased from propools.com are subject to a possible deduction of the estimated shipping amount which had been adjusted into said product at the time of the sale.

Above Ground Pool shipments should arrive at your location as similarily depicted in the photograph below.

Items Designated as Special Order Only Allow 2 - 3 Weeks for Delivery.

But yet people still inquire, "Is Shipping Free?" To which I waggle my head. ;)

[Luxoria]

The smart customers would realize if they are close to your shipping department they are slightly overpaying vs. someone who is the farthest from the shipping dept. Well, unless you the customer gives their zip code first then the only price they see is calculated behind the scenes for them.

[jwhansen]

I agree with you. I actually charged shipping on my site (maybe that is why I had to cancel it). I did have people buy things though.

Basically, a lot of our products have "MAP" pricing. So almost everyone is at the exact same price. If you charge shipping (lets say $10) and everyone else has the same product, at the same price and FREE shipping. You'll never get any sales on eBay, at least not many.

What really gets me is sometimes they get around MAP and even charge less and still offer free shipping.

[lorax]

I'm preparing to remove free shipping from my site. I've run with it for almost a year but have come to think my market space will accept the shipping fees (may even expect them) to be a bit higher for our products.

[gpilling]

Basically, a lot of our products have "MAP" pricing. So almost everyone is at the exact same price. If you charge shipping (lets say $10) and everyone else has the same product, at the same price and FREE shipping. You'll never get any sales on eBay, at least not many.

eBay is an odd case. I have 1000+ listings on there and find that sales are quite random. I use Terapeak to check what sells in my area, and price (surprisingly) does not always seem to matter. I am selling items for 100 + 40 shipping and the sales go to others that charge 199+free ship. Unless they don't because eBays algorithm changed that day and I sold 5 of that item in one day, and then nothing for three months. It will drive you bonkers.

I think the best strategy is to play the game the way you would want to play it (thinking as a buyer). Personally, I never expect shipping to be free, but on the other hand I know what shipping costs, so I expect it to be reasonable. Don't charge me $10 shipping on something that goes USPS for $1, and don't charge me $1 when it will really cost $40. With so many people on the internet these days, you are likely to find enough that think like you.

[jwhansen]

I know, when buying things online, if the company has good good customer service it doesn't matter if they have free shipping or not. Sometimes "FREE" is not better!