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[Jorge - JRami]

Hello Folks,

Need your help, opinions.

Do you think free shipping websites convert better?

Thanks in advance

[Trust]

Convert better than what? If you're talking about free shipping vs. having to pay for shipping, yes.

[Jorge - JRami]

Trust,

Free Shipping, as in you would not pay shipping charges.

You want to buy planet earth from someone that offers free shipping. Would you purchase it from them faster (convert) than if you see someone else selling the same planet earth but charging you to ship it to you?

[GRSmwhite]

I think that if the two sites are well known and it's a planned purchase, say Amazon.com and BN.com and one offered FREE shipping and one didn't-I'd go with the one that gave me free shipping.

But if I'm buying more of an impulse item and not shopping around a FREE shipping might just seal the deal.

[Zeus]

Depend of what you're selling. If it's cheap stuff, free shipping helps. If it's expensive products like furniture, it seems to have the opposive effect on visitors like if they are comparing with prices in store. Even if product+shipping is cheaper.
With free shipping, the merchant includes the shipping cost in the price of the merchandise, so it appears less competitive. Just my experience.

[Jorge - JRami]

Thanks Trust, GRSmwhite, Zeus

more, more...

[Sam Bay]

Spill the beans, jrami. What's behind this silly question?

[HarveyC]

I'm not speaking from experience here, but yep, it would of course convert better. Especially if your prices were cheaper than "real life" shops.

Be interesting to do an experiment

[Jorge - JRami]

Eric, saw the other reply on midnight that Trust closed thank you for your help.

HarveyC, thanks
This is first part of the experiment.

Sam Bay,

LOL No spilling beans yet, not a silly question if it might make you some $$$

[MoneyBusiness]

Originally Posted by Zeus

Depend of what you're selling. If it's cheap stuff, free shipping helps. If it's expensive products like furniture, it seems to have the opposive effect on visitors like if they are comparing with prices in store. Even if product+shipping is cheaper.
With free shipping, the merchant includes the shipping cost in the price of the merchandise, so it appears less competitive. Just my experience.

Man, good point. Never thought of it that way. the higher the price tag, the less important the shipping really becomes. I mean, buy something for $4k, and a shipping charge of less than $100 seems like a pittance, and less important.

On the other hand, if I buy a book from Amazon for $20.00, and I know shipping usually runs $7.00...I will be more than happy to lose that charge!

[Jorge - JRami]

MoneyBusiness, thanks.

Good points indeed

[Rhia7]

Zeus' point about the included shipping cost in the price of the merchandise is a good point, but if the customer realizes that your prices are competitive and/or if your prices beat the competition (with or without a special circumstance/deal) then free shipping would be seen as an added bonus

Also, not every affiliate site specializes in coupons; I would love to say on a page devoted to certain items that free shipping is available by default
(It would make updates a lot easier on me )

[Rexanne]

Jorge,

I've found that free shipping offers help convert sales tremendously. When a customer is buying online, it adds another plus to the convenience of buying online as opposed to just going to a local store to buy it and save the usually outrageous shipping charges for the convenience of buying online. Free shipping is, IMO, the very best way to convert lookers into sellers. Basically, take away the last reason people would shop off line rather than online. It works beautifully. "Free convenience" - gotta love it.

Personally, free shipping would sway me to buy online faster than anything else. Many consumers are not adept at thinking in percentages, so 10, 20 or even 40 % off doesn't strike the same nerve as 'free shipping.' I think most people resent having to pay S&H, even if it is reasonable to expect them to.

[simcat]

I've changed my mind about buying lots of items online due to high shipping costs. A small $15 item, then I get to shopping cart and they want $7.50 to ship it?..no thanks.

Amazon usually offers free shipping over $25. I saw an affiliate site the other day that found an inventive way to capitalize on that.

[Leader]

Originally Posted by simcat

I've changed my mind about buying lots of items online due to high shipping costs. A small $15 item, then I get to shopping cart and they want $7.50 to ship it?..no thanks.

That sounds close to my shipping charge. *checks* Mine's currently $7.35 for orders under $20.

$7.50 only seems "high." But it's actually 60c too LOW. It ought to be $8.10.

Some of the things that go into actual shipping costs are: Weight of item(s), and distance of shipping. Merchants have to figure a price that'll end up covering these costs in the end. Also, most merchants have just 1 distribution center or warehouse. So if you're across the country from that location, the shipping costs increase quite a lot.

Amazon has several distribution centers, most likely to make it so they never have to pay the cross-country fees. But even Amazon has the $25 threshhold before their free shipping offer kicks in.

For GoodBulbs, it costs me a lot to ship even a little box of tulips, unless you're, say, one state over. If someone from California or Texas order 1 bag, it's still probably going to cost me $8.10 just in post office fees alone due to the distance (Priority Mail, Flat Rate Box [Priority also includes delivery confirmation]). And that doesn't cover "handling" costs, which include packing material and labor (and most companies have hired that labor, so it costs them money directly). Even mid-country shipping costs more than you may expect--most orders still need the Flat Rate Box to get the cheapest rate.

The only way around that is to work the price into the item price. Wanna pay $15+/bag of tulips, for that 1-bag order?

Didn't think so.

It's unfortunate that the 1-bag people are essentially SOL. I know they've got to be out there. But for products with any kind of weight to them, like tulips, those 1-and 2-bag orders usually aren't profitable to ship beyond maybe a 2-state radius.

[mrbshouse]

I worked at a free shipping .com for a while and I got in way to late to help them, but the failure was huge.

[webworker]

I think a lot depends on the price range of the product line. For lower end items (like books) free shipping is a big incentive. I bought a microwave at Amazon (because of their shipping deal), $40 for the appliance, free shipping that would have been $21 and change.

High ticket is a different story though.

[ecomcity]

Absolutely documented that free shipping, or free shipping over a certain threshold order size, is the prime online shopping motivator.

[webworker]

Absolutely documented that free shipping, or free shipping over a certain threshold order size, is the prime online shopping motivator.

Mike, I've heard the same thing more than once. But what if the item ends up costing more from the store with the free shipping than at another merchant who has a lower price and charges for shipping, but the total still ends up less? Do people really do their math on high ticket items?

That said, there's an emotional tug with the word FREE, and emotions play a big part in buying decisions.

[Jorge - JRami]

Thanks everyone for your feeback.

Great points and suggestions. We are looking to test and implement what will work best and benefit everyone in the long run, so feeback like this really helps, much appreciated.

[leeann]

My visitors love free shipping. Plus it gets a merchant in more than one place, usually..since most sites have an exclusive free shipping link/page - so it's good exposure for the merchant- kind of a double blast.

[leeann]

One more note What I can not STAND is when a merchant advertises free shipping, but tags on some obnoxious handling fee. I will back out of a purchase with that kind of set up faster than any other. It's such an obvious con.

[Jorge - JRami]

leeann thanks.

> handling fee

LOL Yes, I've seen those too, they're ridiculus.

[MoneyBusiness]

Originally Posted by jrami

leeann thanks.

> handling fee

LOL Yes, I've seen those too, they're ridiculus.

Perfect examples of this kind of behavior is all over eBay auction items. Sure, I'll be happy to buy this great widget for pennies on the dollar, but then look at the s&h charge of $20.00...and they think they're being sneaky..

[charpaula]

I also think the free shipping at a specific dollar amount helps with upselling. Using Amazons' business model - if a widget costs $18 and shipping would be $7.50 - buy another widget to get free shipping. Everyone emotionally reacts to free... even if they end up spending more to get that free shipping.