Shop Talk: Free Shipping vs. Offering Lower Prices
3. Try offering free shipping … with minimum charges. Many companies have been successful with free shipping offers only for orders that are over a certain value. This strategy enables retailers to improve the chances of profitability by creating a minimum-to-order value, often inducing shoppers to buy additional items to reach the free shipping threshold.
- 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.
