Retailers, small business retailers especially, can get stuck on what to do about a free shipping trigger point for their website and the actual shipping charges they apply.
We have see it slow the process of getting their new website live.
After looking at many websites across a range of product categories I have some advice that I hope is helpful. I made this video yesterday:
For the free shipping trigger, if you are not sure where to start, start with $100. Experience with the website will soon guide you as to where you might adjust this. Adjusting the free shipping trigger is easy. Where you land really depends on your own business.
What you charge for shipping, when you do charge, needs to be simple and understandable. Too often we see retailers over complicate this. If you are not sure where to start, choose a number: $10, $12, $15, any number, and start there. Once the website is live, shopper engagement will guide you on where to land.
Every online business has shipping costs. Be careful to not be sidetracked by big competitors that pitch free shipping. Sure, there are shoppers who chase free shipping. There are more shoppers who appreciate reliability, personal service, care with packaging and, most important, of all, immediate availability of stock.
The advice in this video is part of a series of short videos Tower Systems is creating for retailers having websites built by the company and connected to its POS software. The advice in this video is not Tower specific.
The goal of the video is to share information that helps you make an informed decision faster, to overcome a common hurdle on the path to getting live with your website.
Deciding on the right free shipping trigger for your website involves several factors:
- Shipping Costs: Calculate your average shipping costs to determine a sustainable threshold for your business. The trigger should cover these costs and ideally contribute to your profit margin.
- Customer Behaviour: Analyse your customer data to understand their average order value. Set a trigger that incentivises customers to exceed this value.
- Competitor Analysis: Research your competitors’ shipping policies. You could choose to offer a competitive or more attractive free shipping offer.
- Profit Margin: Ensure the free shipping trigger doesn’t significantly impact your overall profitability. Consider the potential increase in sales versus the cost of free shipping.
If shipping costs are slowing you going live with your website, make a decision, any decision, and monitor shopper behaviour, adjust as you learn.