Comments on: Ecommerce Tip #4 – Improve Your Shipping Policy http://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/ Actionable Advice for Better Internet Marketing. A blog by Alex Cohen Sat, 04 Feb 2012 09:10:58 +0000 hourly 1 http://wordpress.org/?v=3.0.2 By: John Saundershttp://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/comment-page-1/#comment-4374 John Saunders Sat, 25 Jun 2011 21:57:15 +0000 http://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/#comment-4374 Hey Alex, nice info - its tricky wording shipping policies not to harm without protecting/ covering yourself. Trying to include the key protection elements such as " re delivery fees" and " damages " are what we find are the hardest ones to try and blend in to not scare customers away. I am from down under and flat rates are a scary way of ecommerce shipping due to the distance of the remote buyers. Huge price fluctuations for our country towns ..and these are the guys buying ( due to no local stores ) A delecate balance none the less. Hey thanks for your shipping policy info John. Hey Alex, nice info – its tricky wording shipping policies not to harm without protecting/ covering yourself. Trying to include the key protection elements such as ” re delivery fees” and ” damages ” are what we find are the hardest ones to try and blend in to not scare customers away. I am from down under and flat rates are a scary way of ecommerce shipping due to the distance of the remote buyers. Huge price fluctuations for our country towns ..and these are the guys buying ( due to no local stores ) A delecate balance none the less. Hey thanks for your shipping policy info John.

]]> By: DigitalAlexhttp://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/comment-page-1/#comment-3805 DigitalAlex Sat, 26 Feb 2011 15:22:46 +0000 http://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/#comment-3805 You're both welcome.Basically, you're talking about two possible scenarios. In either case, we're talking about maximizing profit 1.) Offering free shipping 2.) Free shipping alternatives1.) If you offer free shipping, you obviously have to still make money. So the question is where can you make up the profit?There are a few options - You could set the minimum high enough to ensure that the order is profitable and potentially push some incremental revenue - Limit free shipping to certain products where the margin is high enough to be worth it - Limit free shipping to certain customers. Not everyone has to get the offer. On site behavioral targeting software, like Monetate, can allow you to just show it to returning customers, high value customers, new customers or people who are browsing high value products. You could also limit the offer to certain people through email, for example cart recovery. It might also be an effective offer in your display ad retargeting campaigns.Keep in mind that if you have a higher lifetime value for a certain type of customer (say someone buys a subscription to a product or people who buy at full price), you should factor that into your allowable customer acquisition costs.2.) Free shipping isn't your only option to get people to buy. Shipping is a factor of price and also psychological hurdle in buying. There are other ways to get people to buy aside from discounting. - Compete on something other than price. Conversion rate optimization can make a huge difference and it's a sustainable advantage. Maybe you make service your point of differentiation. Maybe it's tons of product detail and videos on your pages. There are other things to get people to buy than just free shipping. - Flat rate shipping can help, as it's less complicated to understand.I hope that helps! -Alex You’re both welcome.

Basically, you’re talking about two possible scenarios. In either case, we’re talking about maximizing profit
1.) Offering free shipping
2.) Free shipping alternatives

1.) If you offer free shipping, you obviously have to still make money. So the question is where can you make up the profit?

There are a few options
- You could set the minimum high enough to ensure that the order is profitable and potentially push some incremental revenue
- Limit free shipping to certain products where the margin is high enough to be worth it
- Limit free shipping to certain customers. Not everyone has to get the offer. On site behavioral targeting software, like Monetate, can allow you to just show it to returning customers, high value customers, new customers or people who are browsing high value products. You could also limit the offer to certain people through email, for example cart recovery. It might also be an effective offer in your display ad retargeting campaigns.

Keep in mind that if you have a higher lifetime value for a certain type of customer (say someone buys a subscription to a product or people who buy at full price), you should factor that into your allowable customer acquisition costs.

2.) Free shipping isn’t your only option to get people to buy. Shipping is a factor of price and also psychological hurdle in buying. There are other ways to get people to buy aside from discounting.
- Compete on something other than price. Conversion rate optimization can make a huge difference and it’s a sustainable advantage. Maybe you make service your point of differentiation. Maybe it’s tons of product detail and videos on your pages. There are other things to get people to buy than just free shipping.
- Flat rate shipping can help, as it’s less complicated to understand.

I hope that helps!
-Alex

]]> By: Patricia Steelehttp://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/comment-page-1/#comment-3803 Patricia Steele Fri, 25 Feb 2011 06:59:27 +0000 http://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/#comment-3803 I agree with Microphone.co. The same is our problem with what our MAP price is and what Amazon is selling the item for. We tried to offer free shipping for about four months but did not make any money after expenses. We are having to rethink our whole pricing and shipping policy. I found this post by accident tonight. It has helped me process some information about how to work out our shipping policy. Thank you, Alex. I agree with Microphone.co. The same is our problem with what our MAP price is and what Amazon is selling the item for. We tried to offer free shipping for about four months but did not make any money after expenses. We are having to rethink our whole pricing and shipping policy. I found this post by accident tonight. It has helped me process some information about how to work out our shipping policy. Thank you, Alex.

]]> By: Microphone.cohttp://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/comment-page-1/#comment-3778 Microphone.co Fri, 18 Feb 2011 16:04:03 +0000 http://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/#comment-3778 Thank you for all the information, you have help me out a whole lot. I now see that shipping is an important part of growing your business. I would like to offer free shipping but my profit margin will not allow this. Amazon sells an item that I can not even carry, it is a microphone that cost $86.00 wholesale, the manufacture requires every merchant to sell it for no more than $99.00 Amazon is able to do this and still offer free shipping. I guess volume matters too! Thank you for all the information, you have help me out a whole lot. I now see that shipping is an important part of growing your business. I would like to offer free shipping but my profit margin will not allow this. Amazon sells an item that I can not even carry, it is a microphone that cost $86.00 wholesale, the manufacture requires every merchant to sell it for no more than $99.00 Amazon is able to do this and still offer free shipping. I guess volume matters too!

]]> By: DigitalAlexhttp://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/comment-page-1/#comment-1534 DigitalAlex Wed, 13 Aug 2008 04:49:08 +0000 http://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/#comment-1534 Hi Jeralyn,Alas, I don't have a sample for you. My gut would be go with what's fair for you and your members given your budget constraints. You can always test and tweak it later.-Alex Hi Jeralyn,

Alas, I don’t have a sample for you. My gut would be go with what’s fair for you and your members given your budget constraints. You can always test and tweak it later.

-Alex

]]> By: Jeralyn Moranhttp://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/comment-page-1/#comment-1532 Jeralyn Moran Mon, 11 Aug 2008 18:14:44 +0000 http://www.alexlcohen.com/conversion/2008/04/29/sample-shipping-policy/#comment-1532 I am trying to put appropriate wording together for the 'Shipping & Returns' link for a non-profit Nature Center website, selling items like t-shirts, hats, etc. Do you have an example I could follow...? I am trying to put appropriate wording together for the ‘Shipping & Returns’ link for a non-profit Nature Center website, selling items like t-shirts, hats, etc. Do you have an example I could follow…?

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