Shop Talk: Free Shipping vs. Offering Lower Prices
1. Give your customers deferred delivery choices. Consider adding deferred, residential ground alternatives to your website, including offerings from UPS SurePost, FedEx SmartPost and Newgistics. While these services may add days in transit, they come with significantly lower pricing than FedEx and UPS air and ground services. Of course, the merchandise being purchased often dictates the shipping method — fresh fruit, for example, must be shipped for delivery within two days. When presented with a choice, most online shoppers will choose the low-cost (or free) delivery option even if it means a longer transit.
- 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.
