Forums: Discussions for entrepreneurs and small business.

Hello...

On our online store for aftermarket Jeep Parts, we've tried three scenarios... Sale only, Free shipping only and combined.

Ultimately, we've had similar results, and as a small start-up the results were not enough to make a market determination on.

My question is: Does Anyone Know of any Studies That Have Been Done to Measure Consumers Habits with FREE SHIPPING vs. SALES DISCOUNTS for online shopping.

Thank you!

Just my thoughts on the issue.  I worked for a parts distributor that offered both.  They offered sales dsicounts to customers that routinely placed large orders.  Then, my company offered free shipping to any customer who placed an order over $1,500.00. 

Hello,

I have two websites and one offers free shipping and one does not.  I personally think that people like free shipping, especially because sometimes shopping carts don't show you the shipping costs until the very end.  I did read some report that says that people like free shipping which is why we decided to try it on our one site.

Tracy

I have to agree with Tracy.  Since I purchase online a lot, I would pay more attention to those and prefer those that offer free shipping.  If the price still "perceived" to be the same as other sites, I always go with the one that offer free shipping.  This also explain why Amazon official stores are so successfull; I don't know how many people I heard telling me that they love shopping in Amazon.com because it offers free shipping for $25 or more and no tax; it very simple and easy for people to buy there; they don't have to worry about what other "hidden cost" that might be there after clicking checkout that might actually show up that change the actual cost of the product.

HappyGoose 

Within my businesses it has always seemed like free shipping was a bigger hit then other options. Free shipping is a very appealing option and I agree with Tracy, it appeals to customers much more then discounts.

While I can't answer your specific question I'll offer my personal experience on the matter.

As a car guy who buys PLENTY of parts online(ask my wife) I often find myself looking for the free shipping on freight items.  Such as hoods/fenders/engines/transmissions.  Usually there is a much higher cost with shipping these items that a discount would not match.  Also, when I see free shipping I usually spend more than I originally planned, to have everything shipped together.  When I receive a percentage discount I am more likely to carefully plan out exactly what I buy to maximize the discount..

Also I think I am more likely to impulse buy on free shipping than I would on a discounted item.

Hope my feedback can help some.

 I don't know any studies but be careful with free shipping. At least have a minimum cost of purchase before you can actually give out free shipping. The shipping cost that you pay may take all the income you are expecting.

The customer can’t be bound in a boundary of your business. If he gets the benefit out of your company then he will invest there.  If you want to study on the customer interest then concentrates on the product that gets out from your company. If the customer wants a specific change give him. He will be with you for the output you have given. The discount should be given to the well debt manager. If he is paying in the cash then just give him discount.

Debt Management Ireland

I would like to add something that I actually amount to a "free ships, and now as the price of their product line in about 80% of what it costs to send it. So, yes, I lost some money when someone buys the single item, but when someone buys more than one, and now I am 80% covered for the delivery of 2 items, while in reality I combined Shipping fees are very small increase in the first, and sometimes without any additional cost to me. Since about half of my customers buy more than one point, I covered my shipping charges up positively, as a whole.

In the end, I think what it really easy for my customers. Do not worry about shipping fees, duties combined, and so I think the fact that many sites offer free shipping at the time shows that he enjoys the customers. And, of course, I need to keep track of what my competitors as well.

So you can offer free shipping and special discounts on special occasions it will helps your sales volume so do marketing research first before any decision.

Hope this helps!