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Using Shipping Deals to Increase Sales

April 10, 2013 Published by

In the world of ecommerce, your delivery can make or break a sale. We’re not talking about punch-lines, but the way you ship your products. The main difference between an e-tailer and a retailer is the speed at which a customer receives the product they purchase. The efforts you make to close that gap, such as increasing delivery speed or lowering shipping costs, can be recognized by customers and increase your number of sales. If you find your sales dragging, creating a shipping promotion may be just what you need for a quick boost. [more]

While many ecommerce sites do it, a free-shipping offer across all of your products doesn’t work for everyone. To come up with a good shipping promotion, you should consider the makeup of your customer base and logistics of your company. For example, let’s say your warehouse services provider is located in the region where most of your customer base is located. By offering flat rate shipping for all of your products, or free/discount shipping for that particular region, you can entice these customers with your shipping deal instead of intimidating them with an inflated shipping rate during checkout.

Or better yet, find out what your fulfillment services provider does with their shipping discount. Because of the volume of shipments they produce, fulfillment companies get a discounted rate. Usually, they mark up their discounts so the customers are still getting a better price but not the best price. This becomes a profit center for the fulfillment house. At Fulfillment Works, we pass 100% of our shipping discounts on to our clients, which allows them to give better shipping rates to their customers. It’s just one of the features that makes us a great fulfillment company.
You can also try offers like “free shipping for orders more than X dollars.” This is helpful if you are selling low-margin items and have the potential benefit of increasing your average order size. Another idea is pricing tiers – you can offer flat rates that decrease as the size of the order increases.

If you have multiple ideas for discounted shipping offers, it’s best to do a trial run of each to see which works best for your business. Ideally, you’ll want to decide on one before your peak season arrives so you have the best chance at maximizing your revenue.