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What Free Shipping is Really Worth

November 11, 2010

It's no surprise that free shipping is the most popular promotion an online retailer can offer, especially in a climate of cardboard boxescontinuing tight budgets, and retailers are taking note. It's all over the news that Wal-Mart launched free shipping today on almost 60,000 gift items. The third annual Free Shipping Day (Friday, Dec. 17th) has already signed up 550 merchants, and anticipates passing 1,000.

But now we have hard numbers to find out how much money offering free shipping makes for retailers. A recent Stamps.com survey found 64 percent of respondents report that free shipping, with or without minimum spend, is the most effective promotion they can offer during the holiday season, and 53 percent will be offering free shipping on more products this year than last. More than half (52 percent) of the survey respondents who use free shipping with minimum spend report their average order size increases by at least $4.

Only 29 percent of the Stamps.com respondents said they will offer free shipping on orders of any size, no minimum purchase required. But they may be missing the boat: According to the Experian Marketing Services annual 2010 Holiday Marketer: Benchmark Trend Report, last holiday season, free shipping offers with no minimum spend requirement had 70 percent higher transaction rates, triple the revenue per email, and more than double the average order value compared to free shipping offers with minimum requirements.

Double versus $4? No contest. When it comes to free shipping, however counterintuitive it may seem, less (restrictions) is definitely more (sales).

Posted by Meredith Schwartz on November 11, 2010 | Comments (4)

April 19, 2012
In response to: What Free Shipping is Really Worth
Mario commented:

I've read Shiver and I really liked that one. I haven't read any of the other books on your list but from some of the temmoncs I need to check them out!If your looking for series suggestions I recommend the Black Dagger Brotherhood by J.R. Ward. SMEXY Vampires! I just started re-reading the series again the other day and I'm wondering why I waited a year to read them again!Thanks for stopping by my blog and for the follow! I'm following you now too!


April 17, 2012
In response to: What Free Shipping is Really Worth
Pablo commented:

Those are all great reads/series you have up there. Only sad that Karen Macinernay's is only 3 books long. But Jeaniene's series is tlloaty AWESOME. In book 2 Ch 32 is the favorite! Just saying! ;)Agre with Aussieinengland, Vampire Academy series is wicked awesome! And the series is finishing up this December, with a new one spinning off different characters to start sometime later.If you like a bit of mystery with some paranormal elements to it Victoria Laurie's Ghost Hunter series is really good, I've read all those books in 1 day a piece! Her other series Psychic Eye Mysteries is also really good. And another good series that I recently started is Juliet Blackwell's Witchcraft mysteries.I have more to list, but I'm not sure what you have read or not! I see you have Kelley and Keri's books down. Have you read Kim Harrison too?I got plenty more recs, but I don't want to repeat things you already read!


May 7, 2011
In response to: What Free Shipping is Really Worth
keith commented:

That is really interesting. We just launched a free freight deal for www.NicoleBraydenGifts.com our gift company. The free freight deal has a $250 minimum. Our feeling was that most customers buy $100 (minimum shipment) and that the $250 free freight would drive them up to the next level. We are seeing higher purchases which is really good, but based on your research it sounds like we should just offer free freight without minimums. Maybe the right thing since we started with this already is to use a free freight with no minimum buy as a promotion. You gave me some food for thought. thanks.


November 12, 2010
In response to: What Free Shipping is Really Worth
Midwest VP commented:

tks, Meredith...this was useful.

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