Shop Talk: Free Shipping vs. Offering Lower Prices
A: While I understand your question, there's no absolute "right" answer. The best advice I can offer is to try both promotions — free shipping with a higher price, no free shipping with a lower price — and measure the results. You could also survey your customers, asking them which promotion they would prefer.
- 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.
