From a consumer’s perspective, there’s something inherently appealing about the term free shipping. The mere thought of getting something for free is often enough to put a smile on most people’s face. Unfortunately, what’s good for the consumer isn’t always best for the merchant.
The effectiveness of free shipping as a sales incentive is often supported by statistics: ComScore, a leading digital market intelligence agency, found that 72% of online customers prefer free shipping. Impressive, right? Well, not so fast. Although free shipping is preferred by consumers, in some cases it’s ultimately ill-advised.
We teamed up with our friends at ShivarWeb and put together a genius little tool that will help determine the costs of free shipping on your profit margins.
ShivarWeb has also put together an awesome blog post entitled The Profitable Guide to Free Online Shipping for Ecommerce Stores that outlines everything you need to know about free shipping vs. paid shipping.