Free shipping vs. lower prices!

Discussion in 'General Marketing' started by monet, Apr 16, 2008.

  1. #1
    Hello,

    Anyone out there with experience selling products online and offering free shipping. In order to do this I would have to increase my prices around 20%, which are currently at the low end. I'm interested in doing this as a marketing tool and to increase sales.

    Thanks
     
    monet, Apr 16, 2008 IP
  2. Perry Rose

    Perry Rose Peon

    Messages:
    3,799
    Likes Received:
    94
    Best Answers:
    0
    Trophy Points:
    0
    #2
    Many times, it is smart to do both.

    I'm not a big Wal-Mart fan, but they got it right by going for volume. They keep their prices real low, thus they make it up from volume.

    Why would you have to increase your price 20% if you offered free shipping?
     
    Perry Rose, Apr 16, 2008 IP
  3. monet

    monet Peon

    Messages:
    69
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #3
    Thanks for your response! "why would I have to increase my prices 20% to cover free shipping". A $20.00 item cost $4.00 to ship.
     
    monet, Apr 16, 2008 IP
  4. GameOver

    GameOver Well-Known Member

    Messages:
    1,307
    Likes Received:
    35
    Best Answers:
    0
    Trophy Points:
    140
    #4
    In my opinion, I don't really care about shipping, as long as it is a good quality product.
     
    GameOver, Apr 16, 2008 IP
  5. Searchnology.com

    Searchnology.com Peon

    Messages:
    451
    Likes Received:
    12
    Best Answers:
    0
    Trophy Points:
    0
    #5
    In general you must make the offer pay for itself so I suggest you offer free shipping for a purchase amount threshold. i.e. Free shipping for orders over $80.

    Good luck.
     
    Searchnology.com, Apr 16, 2008 IP