Shop Talk: Free Shipping vs. Offering Lower Prices
Q: "I'm interested in the idea of free shipping vs. offering lower prices but shipping surcharges at checkout. For industries like mine (online furniture), which require freight shipping, does offering free shipping have the same positive effect on sales as it does for small products using UPS, etc.? Does an online consumer of furniture expect (and willingly pay) shipping surcharges, so long as the product price is low enough? Basically, will I increase conversions by lowering prices and getting rid of free shipping? Thanks!" — Deborah Fester, owner, Painted Furniture Barn
- Companies:
- Amazon.com
- Federal Express
- FedEx SmartPost
- People:
- Deborah Fester
Rob Martinez is the CEO of Shipware LLC, a professional services firm that transforms businesses through intelligent distribution solutions and strategies. Rob has helped some of the world’s most recognizable brands reduce parcel shipping costs an average of 25 percent through contract negotiations, rate benchmarking, modal optimization, invoice audit and other savings vehicles. A cum laude graduate of UCLA, Rob has 20 years of transportation industry experience, including executive positions at DHL and Stamps.com, in addition to his work as an outside consultant since 2001.
