70% of Brands offer Free Shipping vs. 13% of Stores

My team researched 40 brands' websites and 200 indie stores' websites.

Research Findings

• 70% of tabletop and giftware brands offer free shipping.
• Only 13% of indie stores offer free shipping.
• Brands on average charge $115 to receive free shipping.
• Retailers often charge $191 to receive free shipping. 

Read our research report:
https://www.shoplocal.org/news.cfm/22883/70-of-Brands-Offer-Free-Shipping

Conclusions

• Retailers are at a major disadvantage when selling products online.
• A brand’s website is 4x more likely to offer free shipping. This motivates shoppers to skip indie stores and buy direct from the brand.
• A shopper can often spend $70 less at a brand’s website and still receive free shipping.  Again, this motivates shoppers to skip indie stores and buy direct from the brand.

Why is Free Shipping Important?

• We found that a merchant offering free shipping sells up to 600% more online than a retailer that doesn't. Yes, a 6x increase.   
• Please note: free shipping doesn't mean free shipping with no minimum purchase. Free shipping may have a minimum purchase, such as $100.

Brands have the shipping advantage because they have extra margin to give away on free shipping.  

For Retailers: Solutions and Recommendations
Due to these findings, I highly recommend you update your Online Store's default free shipping setting. We believe the update will help you sell more.

• I recommend you offer free shipping.
• For starters, I recommend you offer free shipping on orders over $191. 
• I suggest $191 because of your retail peers: of the Shop Local retailers that do offer free shipping, the average threshold is $191. 
• If possible, I recommend you offer free shipping at or close to $115 because that is what brands offer it at.

If you would like help with updating your Store's free shipping settings, please email us: [email protected]. My team will help you.

Free Shipping Example

• Please see an example of Shulan's offering free shipping on a Herend plate here: https://www.shulans.com/details.cfm/Herend?prodid=68360

Tableware Today Article
In April 2023, Tableware Today asked me to write an article about our shipping insights. 

You are invited to read the Tableware Today article about free shipping here:
https://www.shoplocal.org/news.cfm/22467/Tableware-Today-Free-Shipping-Pays-Off

View the Free Shipping Study

• View our full free shipping report here: https://www.shoplocal.org/news.cfm/22883/70-of-Brands-Offer-Free-Shippin

Some Good News
There are brands that support their indie stores online. For example, brands that participate in our Syncing service help 'level the playing field' for their retailers online.  Brands pay for the Syncing service and the retailer receives Synced products for free. 
 

Tags:
free shipping

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