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Free Shipping vs. Sales Discount

 
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matsonian

posts: 5

Sep 26, 2009 2:18 PM ET    Quote
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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!



-------------------------

Matson Breakey
Developer, QuickPlanner Plus
http://www.QuickPlannerPlus.com
Planning. Simplified.

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nevadascul

posts: 515

Sep 26, 2009 5:46 PM ET    Quote
Points: 0   Vote

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. 



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Goals are attainable at any age. It just seems to take longer the older we get. - S. Patrick Culshaw
minimegeology

posts: 139

Sep 30, 2009 4:19 PM ET    Quote
Points: 0   Vote

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



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Tracy Barnhart, Owner
Giverny, Inc. / Mini Me Geology
http://www.GivernyOnline.com
http://www.MiniMeGeology.com
HappyGoose

posts: 5

Oct 01, 2009 2:19 PM ET    Quote
Points: 0   Vote

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 



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cmedifast

posts: 33

Nov 10, 2009 1:57 PM ET    Quote
Points: 0   Vote

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.



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Christine Medifast

Rachael West Designs

Rachael West Designs - Wedding Questions

NickO

posts: 7

Nov 11, 2009 2:26 PM ET    Quote
Points: 0   Vote

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.



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Nick O.
www.IMailServer.com
www.theMXrecord.com
Biziness

posts: 198

Nov 19, 2009 2:40 AM ET    Quote
Points: 0   Vote

USA customers tend to prefer Free Shipping. They're weird. They'll buy a $1000 product and balk at the  $15 shipping (via UPS/Fedex with insurance).

International customers tend to prefer Sales Discounts. (They're used to paying high shipping fees/customs/etc.) They don't mind buying a $300 product and paying $50 shipping.

Canadian customers are caught in the middle. They're so close to the border, and yet have to pay International rates.  I can't do anything about it, I tell them. That's what the USPS charge. They're used to long waits for the package to arrive. 3 weeks delay is fast for them.

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