Free shipping can entice customers to buy your product, especially during the holiday season, but make sure it doesn’t lead you awry. Here are common mishaps to be aware of.
More online retailers are offering free shipping as customers come to expect it. Last year, more than half of all online transactions during the holidays included shipping at no charge, a 10 percent jump from 2010, according to a survey of online shoppers by comScore.
While you may need to offer free shipping – at least as a promotional feature during the holidays – to retain and attract customers, don’t jump into it too quickly. Here are five mistakes to avoid when offering free shipping to your customers.
1. Assuming free shipping is your best promotional offer
While free shipping is often touted as the best way to lure customers, other promotional offers might help your business even more. David Kravetz, cofounder of Fairytale Brownies, a Phoenix-based baked goods company, began offering free shipping in 2005. But two years later, he decided to do an experiment. He made two different offers to customers – either 20 percent off their total purchase or free shipping – and was surprised that almost twice as many customers chose the discount. Even better, Kravetz says, those customers bought more because they wanted to increase their savings.
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