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18 Replies Last post: Oct 19, 2007 12:12 PM by NatOnline

Free Shipping on minimum $50 order

Oct 10, 2007 1:40 PM

Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007

Hello,


I am Jean-Luc and run an e-commerce with my wife at http://www.natural-elements-online.com/, we are selling some Hawaiian bath and body products and are in business for 2 years now.

I've got a question for you all: I am wondering if Free Shipping on $60 minimun order would work the same as Free Shipping on minimum $50 order.
Our main problem is the cost of shipping via USPS priority mail to NY, aroud 3Lbs our cost is $15 so when people spend $50 it is kind of harsh to make a profit, so we increased from $50 to $60 but seems like customers don't like it.

What is your recommendation?

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Click to view buybigtires's profile Authority buybigtires 15 posts since
Oct 10, 2007
1. Re: Free Shipping on minimum $50 order Oct 10, 2007 2:46 PM
When you go over $50, you have passed a mental barrier. You could probably say "Free Shipping on a minimum order of 51" and get the same result.

I would say, add a gift item for any order with a minimum of $50, and say it is a "$30 retail value".

In this way, you can still charge for shipping, but they will be able to justify the purchase in their minds.

Or, say $5 shipping on any order over $50, this still seems like you are giving them a deal, and allows you to recover some of the shipping costs.

Experiment, and see what works.

Good Luck.
Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007
2. Re: Free Shipping on minimum $50 order Oct 10, 2007 3:31 PM

I just made a change, will see if it works. But shipping cost strangle us.
Click to view WEBillions's profile Mogul WEBillions 154 posts since
Oct 10, 2007
3. Re: Free Shipping on minimum $50 order Oct 10, 2007 10:08 PM
in response to: buybigtires
I totally agree with buybigtires. I might be able to find a 50 dollar bill in my pocket, so that feels like small change, but above that and it seems like a lot. Though, you are right, you can't let shipping prices ruin you.

As buybigtires said, everyone likes a gift. That's what your free shipping is, a gift. Changing the terms of the gift might feel like a let down to your customers. However, if you give them something else (another free gift), they might even feel like they are getting a better deal! You may even be able to increase your minimum from 50 to 100 as long as you offer another gift at $50.

Always give your customers something for free. It just makes them want to buy more. If you've ever been to Africa, this is the exact strategy the street vendors use and they make a killing. By the way, never except anything for free from street vendors unless you are willing to buy a lot in exchange. I learned this the hard way.
Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007
4. Re: Free Shipping on minimum $50 order Oct 10, 2007 11:39 PM
in response to: WEBillions

Well, I think shipping free on $50 minimun order is a basic. The problem is you cannot please the customers under $50 and give away a discount, because if someone buy for $51, the customer have free shipping (it can cost your $16) plus the discount, in this case if there are more customers buying for more than $50 you dont make any benefice. Finding a good balance is pretty hard.

Please note, we are retailer and we need to buy the products from Hawaii. when we buy our products from the manufacturers, the shipping cost is not free, so each time it is less benefice, + shipping free for our customers + gifts, will not give much. Basically when a customer buy $50 or products we make $10 of profit. We make more money when a customer buy under $50. The only way we can make it is on high quantity of orders.

Retail is hard, I had a photographer/graphic design/broker printing business before, and I made more money. I cannot work in this field because I am taking care of my son at home and I don't have a lot time. This is why I started this business online, more flexible. My wife help me a lot but she has a better and more stable job than the graphic design business I had.

I will go back in the graphic business when my son will go to school :-)
Click to view BeadBuddies's profile Start-up BeadBuddies 5 posts since
Oct 10, 2007
5. Re: Free Shipping on minimum $50 order Oct 10, 2007 11:42 PM

I am not sure if you are able to use these or not but I do all the time for my business, BeadBuddies.net. With USPS Priority Mail you can use the flat rate box for $8.95 anywhere is the United States or US Territories. The box can fit a lot of goods in it and the rate is great! That along with the flat rate envelopes save my business a lot of money. I also have free shipping on orders over $50.00 in the United States and Canada. Believe it or not you can ship to Canada via USPS Air Mail for about the same rate as shipping in the US.

If you are shipping heavier items that will not fit in the flat rate box, try FedEx Ground. The prices are really cheap and the service is pretty fast. Not as fast as Priority Mail but still pretty good.

Hope this helps!

Sincerely,

Rod Connors
BeadBuddies.net
Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007
6. Re: Free Shipping on minimum $50 order Oct 10, 2007 11:47 PM
in response to: BeadBuddies

Well we use USPS and UPS for shipping. We use sometime the flat box priority mail, but our products dont' fit well in these boxes.


I could use Fedex on my template, but we don't have a Fedex account, perhaps I should check and compare with UPS.


Thank you for your advises. :-)

Click to view Faerie's profile Authority Faerie 27 posts since
Oct 12, 2007
7. Re: Free Shipping on minimum $50 order Oct 12, 2007 3:08 PM
in response to: NatOnline
We've had success with flat rate shipping. Same price for shiping no matter how much you order. Yes, there are people that buy just one item. There are some who go in with friends for a huge order. Most do take advantage of it to order several items.

We use USPS. Between the flat rate envelope and the flat rate box it is a workable system. Keep in mind there are two flat rate boxes with different shapes. My shipping manager often finds that what doesn't fit in one will fit in the other.

We do get a lot of orders from Alaska, Hawaii, US territories and military addresses because using the flat rate shipping makes us a much better deal than companies that only ship UPS or FedEx.

Figuring out how to price shipping in a way that is a good deal for customers but at the same time is not a drain on the business was a challenge. It's continued to be a challenge as we've grown but this solution has proven a good fit for us.
Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007
8. Re: Free Shipping on minimum $50 order Oct 12, 2007 3:39 PM
in response to: Faerie
I use flat box sometime. For example if a person order a lip balm tin, a flat box will cost $8.95 instead of a regular small box or envelop with bubbles the shipping cost will be $4.60, so the decision is pretty simple and the customer will be happy to spend less in shipping. For some big orders I cannot fit our products in a flat box. We are selling around 100 differents products, so the shape are different.

I have a friend who run an e-commerce of tee shirts, caps, he is using flat boxes, most items are the same.

We try to secure and protect the contents as much as we can, sometime we spend more money on shipping that we get from our site/customers. We are seeking 100% satifaction from our customers.

We also give the choose between USPS and UPS, people can take the provider they want.
Click to view maxamillion's profile Authority maxamillion 28 posts since
Oct 11, 2007
9. Re: Free Shipping on minimum $50 order Oct 12, 2007 10:33 PM
Have you tried other shipping companies including rail and bus. Increasing the price is not a good marketing method. Customers dont like the idea of free shipping if they feel the price is high.

Do you manufacture the product at your Nevada location or purchase the product from the continental U.S. If you do purchase and the orders are large enough, try drop shipping
Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007
10. Re: Free Shipping on minimum $50 order Oct 13, 2007 11:28 AM
in response to: maxamillion
No, we are just retailer. All our products come from Hawaii, and main manufacturers ship in 3 days air, if we want surface ( by boat it will take 2 or 3 months the get the order from manufacturer)

Drop shipping is another concept, not all our manufacturer do the drop shipping. Drop shipping cost more money because most of the time the manufacturer charge $5 fees per order. These manufacturers are also online, one do drop shipping, but you make peanuts benefice, so it is not worth it :-)

Also with drop shipping you don't master the order, it takes time to process. There is more manipulations and you make less money that way. Advertisers will consider you as a Affiliate, and they will not list you on most directories, or else, this will penalize you pretty bad.

The problem is, if you don't make enough benefice, you can't advertise, you can't buy sponsor links, etc...

We process speedy orders. In general we process the orders the same day, and drop off same day or next day, customers are in general very happy to receive their orders very quick.

Click to view LUCKIEST's profile SCORE LUCKIEST 7,933 posts since
Aug 6, 2007
11. Re: Free Shipping on minimum $50 order Oct 13, 2007 12:34 PM
Good question. Time will tell. On October 8, The New York Times ran a story
NOTHING SAYS "BUY" LIKE 'FREE SHIPPING. L L Bean's free shipping order
comes with no minimum purchase requirement.
You can see the story if you Google "free shipping".
Hope this helps. LUCKIEST
Click to view NatOnline's profile Mogul NatOnline 670 posts since
Oct 10, 2007
12. Re: Free Shipping on minimum $50 order Oct 13, 2007 1:59 PM
in response to: LUCKIEST
Yes but look at the prices lol You cannot compare but it is a well made marketing.

Can I do that? No because if a customer order a $2.50 lip balm stick from New York, it will cost more to ship, as you can see.

Of course sometime I give free shipping under $50 but only specific occasions, and when customers don't ask for that.

Amazon.com start doing a shipping free from $25 orders but on specific products, but I bet they've got a special shipping discount deals.
Click to view fabulousitee's profile Professional fabulousitee 11 posts since
Oct 18, 2007
13. Re: Free Shipping on minimum $50 order Oct 18, 2007 1:32 PM
I also have an online store http://www.FabulousFindsbyTylisa.com and I offer free shipping on orders over $50. My flat shipping rate is $10, which at first seemed a little high to me. But looking at the competition its only about a dollar or two more than what they charge and the clothing I sell is very affordable. So if someone orders a top at $15 bucks and pays the $10 shipping fee, they are still only spending $25 on a top that's really worth $40.
I guess this is easier for me because I'm not selling the same type of products as you. I also sell accessories and the shipping on those are just $5.
Click to view dazzler's profile Authority dazzler 23 posts since
Oct 17, 2007
14. Re: Free Shipping on minimum $50 order Oct 18, 2007 4:16 PM
I don't offer FREE shipping on my web site. I sell 1-of-a-kind handcrafted necklaces and when someone purchases one, they get paperwork including a signed certificate with their individual necklace, a beautiful satin-lined velvet necklace folder, tissue-paper, a Tiffany-style box with lid and satin imprinted ribbon all FREE. I usually send everything out Priority Mail with Delivery Confirmation. My clients tell me not to have SALES and not to ship for FREE. They are classy and say that offering FREE shipping is bringing your business down to an average level. Customers should know that to even send a letter first class will cost 41 cents, and just because people are buying something, they should not expect to receive FREE shipping as the norm.
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