Shop Talk: Free Shipping vs. Offering Lower Prices
2. Try collecting membership dues to offset shipping costs. Amazon.com and other leading online retailers offer free shipping for customers who pay an annual fee to access free deferred shipping, as well as low-cost express upgrades on eligible products. Membership programs help by not only defraying your shipping costs, but they also enhance customer lifetime value. Since customers in essence pay for the free shipping up front, they're more likely to regularly come back to your site to buy more.
- 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.
