From which store would you shop, the one offering free 2-day shipping or the one charging $105 for standard delivery?
The first one, of course. Which leads us to the rules your store needs to follow:
Rule #1: Do NOT seek to break even on shipping Rule #2: Seek to LOSE money on shipping!
Most retailers share with me their fear about losing money on shipping. What ends up happening? They end up losing: the entire sale. What about that $1,000 Herend order? The store is less likely to get it because it's worried about charging either $75 or $105 for shipping. Instead, it got: $0 because the customer ordered from the retailer offering free shipping.
In today's market, you have to give away shipping (i.e. lose money). That is the current economic reality. If you want proof, check out Best Buy, Amazon, and Walmart. They are not only offering free shipping on many things, but free 2-day shipping.
When a store offers free standard shipping and 'loses' money, it's not being generous compared to other retailers. It's being stingy compared to bigger retailers that offer free 2-day shipping.
Excerpt:
Best Buy is firing the latest salvo in the holiday shipping wars with a new option: next day shipping — with no minimum order.
The offer announced Tuesday follows moves by Walmart and online leader Amazon, which started rolling out the service earlier this year.
Best Buy says the next day service covers thousands of items but excludes bigger items like TVs and refrigerators.
Earlier this year, Amazon upgraded its free shipping options for Amazon Prime members who pay $119 a year. It covers more than 10 million items. Walmart rolled out next day delivery this past spring.
The move by Best Buy will only increase pressure on other rivals that are already investing in millions of dollars to shorten the delivery window.
Your Bridge software has built-in tools to help your business offer free shipping. You can offer free shipping on all orders or just on purchases above a certain dollar amount. Your Bridge software also enables you to offer coupons (discount codes) that offer free shipping. Please ask our team for help in utilizing these features.