Free Shipping Incentives

[Former_Member]

I recently bumped into a study that found "a free shipping offer that saves a customer $6.99 is more appealing to many than a discount that cuts the purchase price by $10".
http://knowledge.wharton.upenn.edu/article.cfm?articleid=1449

One way Etsy sellers can use this tactic to their advantage is to offer free shipping to their return customers. Why not create a free shipping coupon code and include it with your thank you note?

Have you tried this, or any other free shipping incentives? Have they worked for you? I'd love to hear your opinions on this!

[Former_Member]

The psychology of consumerism can be pretty interesting. Thanks for sharing this!

I've had personal experience with this as well. For me, offering free shipping has been the promotion that has been most effective so far.

[Former_Member]

I just had this discussion with my husband, a big Ebay buyer. He said when he sees free shipping he thinks, "What else do they have available?". Since I'm hoping people will want to bundle my items anyway (because they coordinate) I though a free shipping incentive might push them over the buying edge. I just started but I decided to go with free shipping on each additional item and just set up my shipping profiles that way. We'll see what happens!

[Former_Member]

I have tried that with heartsabustin and 1madwoman - I've had more people use it in 1mADwoman, interestingly enough. Girls do love their purses. :D

[Former_Member]

Hmm. I like that theory. Sounds very practical & realistic.

I'd much rather pay full price & not pay shipping than pay less & pay the shipping. Definitely feels like a better way to save in a very strange way. The mind can play some interesting tricks in logic can't it.

Good ideas! Thanks,
-Cory U of CUExperiments

[Former_Member]

It's so funny because I have found just the opposite to be true... I offer free shipping and it doesn't get a blink...... % off works well (but I don't do this much) What works best for me? A free gift with purchases above X dollar amount.

Why? because most of my buyers are buying a gift for someone else and this way they get to keep the free gift for themselves lol... I mean they were planning on spending the $ anyhow I guess they figure. Also some buyers add it in with the gift they were giving the person... making it an even cooler gift.

I set the dollar amount they need to spend JUST above my average price point item... and this inspires them to buy 2 so that they get the free gift (usually earrings) ... they always seem to remember someone else they needed to buy for so that they get the earrings for themselves :)

[LaurasLastDitch]

This is all fine and good when you are selling something fairly inexpensive with cheap shipping, so the overall price looks reasonable even with the shipping price rolled in.

My theory is that the problem is really sticker shock. If someone looks at the item and wants it, then sees the shipping seems too much, they move on. But, if the item looks really overpriced because you've rolled the shipping cost into it, they'll get sticker shock before they even click on it, so you've accomplished nothing.

My answer to this is to raise the price on some things and reduce the shipping accordingly, so the shipping cost seems reasonable compared to the price of the item, yet not increasing the item price so much that it seems unreasonable before the potential buyer even clicks on it.

When I see free shipping on everything, it just makes me think that, if I buy multiple items, I'm paying for shipping twice.

The problem with offering free shipping to return customers is that sometimes an item is very expensive to ship, and it would get complicated to exempt certain items. I just paid $96 to ship some kitchen cupboards yesterday. That would be painful. It's probably fine for someone selling jewelry or other small items.

[Former_Member]

I offer free shipping on all of my items to my US customers. Unfortunately, I can't really say whether it has worked or not since I have not seen any sales in several months. I know personally I would rather pay a little more for something and get free shipping than to pay outrageous shipping cost. I've seen several sellers that sell small items charge as much as $10 for shipping. Since I know that it does not cost that much to ship small items I will not make the purchase for those items.

[Former_Member]

I've had the same experience as @newhopebeading - whenever I have offered free shipping, I did not get one taker. This most recent experiment, I announced it on my FB page...top of my Etsy shop announcement...top of my Etsy profile page...nothing! LOL My customers also seem to prefer getting something "with" their purchase.

PS - but I do agree with the Wharton study -- free shipping definitely entices people because it is like shopping at a brick-and-mortar store, so they justify their "expense" better in their minds! :)

[Former_Member]

I did it once for return customers, and I won't ever again.

I had an international customer come back and buy 3 things, which went over 4lbs, so I basically gave her the stuff as the shipping was 3/4 of the items purchased.

So just be careful boys and girls.

[EvesLittleEarthlings]

I don't think this works for me and here is why.
It is not fair to local shoppers, who don't need shipping. I know lots of folks who look at my shop that live within driving distance and folks who look through my shop before craft shows. Why charge them an inflated price for shipping that they might not need.
For me, the best way to go is to charge what I think the item is worth and charge what it costs to ship.

[Former_Member]

Free shipping has always been an enticement for me when I'm shopping elsewhere. The fact that I don't have go through the entire "add to cart" part to find out what my find cost will be is an incentive for the time-saving aspect alone.

But Etsy is different because you have the shipping costs upfront. I think it depends on the size of the item and how much it costs to ship.

If it's a small item that's only $2 to ship, I don't know if it will have very much impact on me as a consumer.

But, thank you for the tip, I think I'm going to try it in my shop.

[ClassicallyRomantic]

Oooo interesting! I would totally believe this as I am sure I have been swayed by free shipping many times lol. FS means you can get whatever you want and only pay for the items just like in a store, hearing that deal from an online place is enticing! With the percentage off it make you think, "Well I still *have* to buy this certain shirt or these sale pants." There is less freedom to shop.

Can you post a link to the article and where you found it? I'd be interesting to read the researcher's analysis.

[KriyaDesign]

I agree with lauraslastditch. When I see free shipping, I know when I buy two items from the seller I'll be paying double (shipping) fees. Because the seller has included the fees into the prices. It makes me think twice about buying free shipping item.

Lately I offer flat shipping $2.50 for entire purchases. No shipping for additional items. I made quite a blunder on the first two sales. A Japanese buyer bought $150 worth of items. And only $4.50 shipping. I was shocked because I know without doubt right there and then they have to ship priority. Which cost $30 with insurance. She only paid $4.50! Okay I've made some changes since then. Valuable lesson there!

On the positive note... I've got a lot of multiple purchases because customers receive quite a saving with flat rate fees. Actually I was inspired by this one event. I was buying supplies and kept adding things to my cart. Not sure where but online. The shipping charges are flat rate. So I went nut finding what more could I put into the cart. I ended up buying things not on my shopping list. Oh well, I could make it into jewelry. I know I do. Just have to be fast, so the money won't tie into the supplies :-)

Free shipping works well with light items such as jewelry. I am not sure about other items weigh more than a pound. I rarely shop heavier items... so love to hear what others think about free shipping

[Former_Member]

This is a great idea! I have been including a 15% off coupon but now I will include a free shipping coupon. I have a lot of international customers so I think this will be more effective!

[Former_Member]

I find free shipping very useful and I offer it on most of my products.

first of all, I don't like % disounnts myself - I always suspect bad quality, or bad customer service or smth. I want to pay for quality, and I appeal to customers that have similar shopping views.

Free shipping does not look like a discount, but it is a very nice way to attract your customers. You say the whole price directly and don't hide any additional costs.

And I use to include my shipping costs in the product price, this way I keep my profit at a proper level and don't disrespect myself

[Former_Member]

lauraslastditch says Edited on Oct 11, 2011

This is all fine and good when you are selling something fairly inexpensive with cheap shipping, so the overall price looks reasonable even with the shipping price rolled in.

My theory is that the problem is really sticker shock. If someone looks at the item and wants it, then sees the shipping seems too much, they move on. But, if the item looks really overpriced because you've rolled the shipping cost into it, they'll get sticker shock before they even click on it, so you've accomplished nothing.

My answer to this is to raise the price on some things and reduce the shipping accordingly, so the shipping cost seems reasonable compared to the price of the item, yet not increasing the item price so much that it seems unreasonable before the potential buyer even clicks on it.

When I see free shipping on everything, it just makes me think that, if I buy multiple items, I'm paying for shipping twice.

The problem with offering free shipping to return customers is that sometimes an item is very expensive to ship, and it would get complicated to exempt certain items. I just paid $96 to ship some kitchen cupboards yesterday. That would be painful. It's probably fine for someone selling jewelry or other small items.
------
I agree with you and so that's the challenge.

Free shipping DOES entice buyers, but how do you manage that and not cheat the customers who would rather than pay less in product costs and more in shipping.

My solution is to do everything I can to offer shipping rates as low as possible and then offer free shipping coupon codes so that the shipping costs are not built into the products and even when they don't use a coupon code. I HOPE it works out for me!

[Former_Member]

kriyadesign says Edited on Oct 11, 2011

I agree with lauraslastditch. When I see free shipping, I know when I buy two items from the seller I'll be paying double (shipping) fees. Because the seller has included the fees into the prices. It makes me think twice about buying free shipping item.

******************************

I agree, but this is more relevant to the shops with lower prices. Most of my customers purchase 1 item at a time.
On the other hand when I shop here on Etsy for supplies and see free shipping in a shop with items for $5-15 - yes - this makes me feel I am paying double shipping and I try to go to someone else.

In my shop I offer different little niceties if the customer buys 2 or 3 (or more items)

[Former_Member]

Wow...I love these posts. I've learned quite a bit here today. Thank you.

I have posted all my items recently with free shipping. When I do a craft show or sell locally, I usually will remove the shipping fee and just tell them, "since I'm not having to ship them to you or box them up, I can lower the price by xxx amount if you are interested."

People always love to get a lower price than what is marked.

I had not thought about what lauraslastditch said...about feeling like you are paying for shipping twice or more on multiple items. I'll have to think about that, because I do believe free shipping is a draw. Hmmm I wonder if I stayed with "free shipping" on all my items then offered a discount when purchasing x amount of items...would that take care of that "double charged" feeling?

[InspiredJewelryShop]

I have free shipping anyway so this wont really work for me. I plan on giving customers 25% off if they return but I havent had a sale in forever :(

[ShareMyMoon]

I do think buyers like free shipping. Just watch using the word "free" with google. I believe it is on their naughty list.

[Former_Member]

I have a fixed shipping fee so I will offer free shipping to my returning costumers.
Do you advertise your free shipping coupon in your shop (like: returning buyers get a free shipping coupon?)

[Former_Member]

At the bottom of the description I have a bullet that indictes free shipping. Then I set up a profile for free shipping that I select each time. I do charge for shipping if not in US.

[Former_Member]

I've been thinking about offering free shipping on their next purchase, since it doesn't cost me very much anyways..but I only want to offer it to shipping in Canada since that's where I live. Is it possible to do that? I haven't played around much with the coupons except to do a 10% trade coupon and a 15% coupon to celebrate my shop opening.

[HOUSEOFLENORA]

I think we are all right because there is no "one size fits all" idea or theory for this. I have actually underquoted my shipping for international customer without even realizing it, so I know we tend to be reasonable but % discounts seem to go over well with our customers. Free shipping worries me when shipping large accessories such as heavy leather purses or heavy all weather coats. Rolling the shipping cost into that can cause sticker shock as well and I find that our customers anticipate a higher shipping price in that case. It really is a case by case thing...