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Online Product Pricing and Free Shipping

Online Product Pricing and Free Shipping

A common question we hear from clients is, “how do I set pricing on my eCommerce Website and should I offer free shipping?” It seems like a simple question, but it is actually very complicated and drives at a big issue facing eCommerce and online retailers. Who pays for shipping? Shipping is never free, in fact prices are going up! Although consumers want free shipping, it is actually built into the price of the product. This is causing margins to erode and leading to a competitive advantage to companies that can negotiate the best shipping rates and do lot’s of volume. So how does the average retailer deal with the free shipping that online consumers demand? Here are a few tips:

  • Find a pricing balance between a competitive price and always offer free shipping.
  • Add value with great product descriptions and photos, because competitors may still be cheaper.
  • Offer great service and product guarantees.
  • Develop a very easy to use Website.
  • Become a world-class online retailer so that price becomes less of an obstacle to buyers.

Customers expect free shipping and will also see value in a well executed online sales strategy. These helps grow sales and maintain a competitive profit margin when shipping products for free.

Thomas Young

Thomas Young is the CEO and Founder of Intuitive Websites. He is a consultant, award winning Vistage speaker and author of “Winning the Website War” and “Sales and Marketing Alignment.” Tom has helped thousands of companies succeed online and has over 25 years digital marketing experience.