Free shipping - yay or nay?

[RSR Fulfillment (FR & DE)]

For items sold in your domestic market, is there anyone here that has moved from free shipping to charging for shipping? I see many of my competitors do not offer free shipping.

This quesiton does not include international sales, where clearly offering it for free incurs huge costs.

 

[fisicx]

Brought something the other day and they had ‘including P&P’ next to the price. Which I quite liked. Because most people know that’s what free shipping really means.

 

[RSR Fulfillment (FR & DE)]

Brought something the other day and they had ‘including P&P’ next to the price. Which I quite liked. Because most people know that’s what free shipping really means.

That's just rewording, though. I agree it is nicely done, but the question stands.

 

[lesliedocherty]

We monitor 20 of our closest competitors, monthly looking at shipping charges and returns costs, returns period, price match, discount codes, student discounts etc.

Currently average is Free Shipping over £75, 90% with Royal Mail, other 10% use couriers for this.
No-one does free returns anymore.

It seems to be an evolving landscape, best to keep an eye on your competition.

We offer, Free Royal Mail over £75, Free DPD over £150
60 day Returns, Price Match, Student Discount, Blue Light Discount, First Order Discount
£3.50 charge for using our returns label.

 

[fisicx]

The only way to know is to split test on your site. Offer both options and see what happens.

 

[Mark T Jones]

From a buyer perspective it's really a question of transparency.

I hate hidden extras to the point where I will walk away - even if the deal is potentially better overall.

I'm fully aware that shipping costs money - if you present as free (ie included) or separate it out openly, I'm happy.

On the other hand, if it's held back until the last minute, I will probably go elsewhere and never trust you again.

 

[antropy]

Brought something the other day

Where did you bring it to?

Paul.

 

[antropy]

For items sold in your domestic market, is there anyone here that has moved from free shipping to charging for shipping? I see many of my competitors do not offer free shipping.

We offer free shipping on orders over £30. Below that it's not worth it.

Paul.

 

[DontAsk]

Some years ago, never had any complaints.

It's a no brainer. Adding P&P to every order works out much better for customers who order multiple items than adding it to the cost of every item.

 

[Mister B]

We've trialed all sorts of permutations and the one clear cut conclusion is that carte blanche free postage is simply unworkable.

We're currently charging £2.99 for RM Tracked 48 and £3.99 for RM Tracked 24 and see very little resistance to this. Orders over £50 are carriage free and we find that this entices people to spend a little more.

By charging for postage we have the room to have carriage free returns which allows people to buy with confidence.

 

[RSR Fulfillment (FR & DE)]

I do free over 50 but would love to remove it instead of a necessary price hike

 

[LukeB]

Like most things, it depends. In my current business (gifting) we do offer Free Shipping, but in my last businesses (Furniture) we tried Free Shipping but eventually moved back to paid (partially subsidised) as the costs were just too high to absorb, and jacked up the price if embedded. Ultimately the expectations for that segment was that there is a delivery cost, so as long as ours wasn't over the top, it wasn't benefiting us to offer it.

I read this Metorik Insights report recently where they found that across something like 5 million orders globally, the AOV of orders with Free Shipping was $114(USD), where as the AOV of orders without Free Shipping was $100 – including the $17 average shipping cost, so only $83 of products.

It's a pretty big difference, so it's certainly worth considering. But like anything, definitely need to test it with your business/industry, etc.

 

[RSR Fulfillment (FR & DE)]

Like most things, it depends. In my current business (gifting) we do offer Free Shipping, but in my last businesses (Furniture) we tried Free Shipping but eventually moved back to paid (partially subsidised) as the costs were just too high to absorb, and jacked up the price if embedded. Ultimately the expectations for that segment was that there is a delivery cost, so as long as ours wasn't over the top, it wasn't benefiting us to offer it.

I read this Metorik Insights report recently where they found that across something like 5 million orders globally, the AOV of orders with Free Shipping was $114(USD), where as the AOV of orders without Free Shipping was $100 – including the $17 average shipping cost, so only $83 of products.

It's a pretty big difference, so it's certainly worth considering. But like anything, definitely need to test it with your business/industry, etc.

So offer free shipping, sell less?

 

[RSR Fulfillment (FR & DE)]

oh, with free shipping the average order value was $114, without free shipping it was $100.

 

[Paul Kelly ICHYB]

There is no thing such as free shipping!

It has to be paid for and depends on the market and margins.

Amazon Prime has made consumers more demanding when it comes to free shipping.

Including shipping in the price does make it easier for buyers and removes surprises at checkout.

Where margin allowed it, I used to offer free shipping for a slow service (5-7 days?), with a small surcharge for faster delivery. Most people upgraded. If you wanted to be cheeky, you could use the same service for both options!

 

[AmazonGeek]

There is no thing such as free shipping!

Agreed! One way or the other, the customer pays for it. The main reason sites like Amazon and eBay pushed people to include it is because sellers used to try and get around the commissions by selling something for a penny with £10 shipping. Now, you get penalised in the rankings if you try and do that and there are often limits to what you can charge on top.

Personally, I include it in the price because then you can say 'free shipping'. Psychologically, I would rather pay £9.99 with free shipping than see a price of £6.99 with a £3 postage charge because I don't want to pay for postage lol.

And whatever you do, don't leave it until right at the end of the process before telling them there is an extra shipping charge. You don't want people spending ages putting in all their details and then finally being told about the extra fee. Yes, that means asking for a postcode or country early on if they are outside the UK but if you are not careful you will get a lot of cart abandonments.

 

[HFE Signs]

Nobody likes to pay for post & packing, simply because they see it as wasted money, free is best if you can build it into your product cost.

We offer free UK mainland delivery with two or more banners, this gives the option of saving the postage & packing cost if they can make use of two banners rather than one, it works well for us.

For highlands and islands, where couriers charge so much more, we discount the courier cost by the cost of the UK mainland rate so they too make the same savings.

 

[Lucan Unlordly]

We charge P&P on everything.
If it's a single heavy box it's *£20, if it's 2 boxes it's £20, 3 boxes the same. We arguably make about £8 on a single, £4 on two and lose a little on 3. Yesterday we despatched 2 double box orders and and 2 singles. Today 5 singles.
* less for 2k boxes going by Royal Mail

I've told customers who try to insist on free delivery to go online, place the same order with the companies that do free delivery and strangely most say 'I already have' and you whack em by a huge margin!

 

[Chris Ashdown]

Retired many years ago but 90% of my purchases these days are via Amazon Prime, so simple and virtually guaranteed next day service. so convenient and such a massive range of goods, so hard to find a reason to look elsewhere

 

[HFE Signs]

Retired many years ago but 90% of my purchases these days are via Amazon Prime, so simple and virtually guaranteed next day service. so convenient and such a massive range of goods, so hard to find a reason to look elsewhere

You won't find our products on Amazon

 

[japancool]

In my market sector, almost no one offers free shipping. Customer tend to compare the headline price and "free" shipping puts you at a perceived competitive disadvantage, especially when people buy multiple items, which they do a lot.

 

[HFE Signs]

In my market sector, almost no one offers free shipping. Customer tend to compare the headline price and "free" shipping puts you at a perceived competitive disadvantage, especially when people buy multiple items, which they do a lot.

Interesting, how can free shipping put you at a disadvantage?

 

[japancool]

Interesting, how can free shipping put you at a disadvantage?

Because you will inevitably have to increase your prices to cover shipping. What we sell is bulky, so you don't have the option of using something like large letter mail, they have to be parcels.

 

[HFE Signs]

Because you will inevitably have to increase your prices to cover shipping. What we sell is bulky, so you don't have the option of using something like large letter mail, they have to be parcels.

But if people compare the headline price which happen to be similar, and one is free shipping, surly this give the price advantage.

Our method of free shipping with two banners is based on the saving we make on admin covering the shipping cost, rather than it being added back into the product cost

 

[japancool]

But if people compare the headline price which happen to be similar, and one is free shipping, surly this give the price advantage.

Not really. People don't take into account the shipping. All they see is that one person sells it for 49.99, the other sells it for 53.99.

And they're not wrong. If you buy two, you end up effectively paying shipping twice.

 

[HFE Signs]

Not really. People don't take into account the shipping. All they see is that one person sells it for 49.99, the other sells it for 53.99.

And they're not wrong. If you buy two, you end up effectively paying shipping twice.

Maybe, but not with our method, they pay delivery for one banner, for two banners they don't - we save on admin and processing which covers the cost of the shipping

 

[japancool]

Maybe, but not with our method, they pay delivery for one banner, for two banners they don't - we save on admin and processing which covers the cost of the shipping

So what's the difference between that and paying a single delivery charge for the whole order, which is what I do? My delivery charge is either 4.99 for up to 1kg or 6.99 for anything more.

 

[HFE Signs]

So what's the difference between that and paying a single delivery charge for the whole order, which is what I do? My delivery charge is either 4.99 for up to 1kg or 6.99 for anything more.

Marketing - Just means we can say 'free delivery with two banners', I'm not suggesting you do the same.

I was just questioning your point of how 'free delivery' can be a disadvantage, I see your point that people might assume the delivery is built into the product cost, but as I've explained it isn't always the case, certainly isn't with our method.

 

[zomex]

I think it should come down to many factors such as your product, target market, size of business etc.

As others have stated shipping is never free, it is otherwise merged within the cost of your product.

Personally as a shopper it stings to make a purchase seeing x amount for shipping on checkout. Even though it's always a cost it does feel like wasted money to me as a consumer. Free shipping is a big incentive in most cases even if it's not "real".

 

[japancool]

Marketing - Just means we can say 'free delivery with two banners', I'm not suggesting you do the same.

I was just questioning your point of how 'free delivery' can be a disadvantage, I see your point that people might assume the delivery is built into the product cost, but as I've explained it isn't always the case, certainly isn't with our method.

That's not what I'm saying at all. What I'm saying is that customers do not consider the delivery charge when comparing prices. They will consider a 10.99 product is cheaper for them than a 13.99 product, even if the former has an extra £5 on it at checkout for delivery.

 

[Lucan Unlordly]

That's not what I'm saying at all. What I'm saying is that customers do not consider the delivery charge when comparing prices. They will consider a 10.99 product is cheaper for them than a 13.99 product, even if the former has an extra £5 on it at checkout for delivery.

I agree in principle but think a survey of buyers is needed to see how many are seduced by the lower price and can't be bothered to look further.

 

[Chris Ashdown]

It is annoying that they state shipping is calculated at the end after getting all your details entered when they could give the basics on the first page probably by pull down menu's

 

[antmosdup]

Hello,
Is you wish to offer free shipping to your international customers with a very attractive cost of logistics? We may have a solution for you

For context, we're a team of ex-Amazon logistics leaders that recently launched Teleship. We offer an end-to-end cross-border logistics service ex-UK to several destinations (US, EU27, etc..), and our mission is to help SMBs grow their international footprint through swift delivery services at minor costs.

Our service is completely transparent, no long-term engagements, and we support DDP delivery with or without IOSS required (for EU deliveries).
Contact us ([email protected]) and we would be happy to jump on a short call to help you.
Best,
Antoine @ Teleship

 

[lesliedocherty]

nice prices, sent over a contact me on your site