Free Shipping, everyone wants it but what’s the real cost?
Posted May 21, 2013 |
Filed under What the Heck? | Comments (0)
If you are selling anything on the web, you know that offering a free shipping option has become a must. Swags Galore “America’s Online Curtain Superstore” have had a 14 year tradition in being the low cost alternative to high priced Window Treatments and we have built our whole business around that concept.
Shipping Cost increase by an average of 8% year after year, but we have managed to maintain our free shipping option. Customers don’t want to pay for shipping, because it doesn’t offer them value. We get that, but sometimes it doesn’t make sense.
Example 1: Customer buys 8 Sheer panels for $9.99 each, there total bill comes to $79.92 and they qualify for free shipping, this saves the customer $14.99 and the customer is satisfied. The actual shipping charge for that order will range from $10.81 to $22.95 depending on where the customer is located.
Example 2: Or we can sell the same 8 Sheer panels for $7.99 each which comes to $63.92, plus $10.99 for shipping for a total of $74.91 ($5.01 cheaper than example #1). Great bargain, cheaper than the free shipping option in example #1, but it seems as though the customer doesn’t see it that way. Customers want free shipping and do not see the value in shipping cost, even if the product is priced cheaper than it would be with free shipping.
So what’s a company to do? Well, were going to continue to offer Free Shipping, but it’s as frustrating for us as it is for customer. We wish there was a way of proving the value of the product without the cost of shipping being the focus, until then please understand that Swags Galore wants to be your Low Cost Alternative for all your Window Treatments and we will work as hard as we can to maintain your Trust and Business.