Clarity Shipping Recommendations
Countless factors affect the effectiveness and lucrativeness of shipping promotions. Due to the nuances in different web businesses, there is no “out of the box” or “one solution fits all” approach to shipping. Whether you’re just entering the market place or figuring out how to logistically scale, there is more than one way to skin a cat.
When it comes to helping web businesses operate to their fullest capacity, Clarity is a friendly resource. In handling over 600+ successful projects, we have successfully executed for our clients time and time again. Below, we have some friendly suggestions to best implement effective and profitable shipping programs.
Whenever a product creates enough cushion to absorb the shipping expenses, it is best to offer a promotion. You can afford it, and it is statistically proven to increase conversions. The nature of the product being delivered — particularly its size, price, margin, and value— can affect whether or not customers are willing to fork up the extra dollars. Small to medium size businesses can’t always offer free shipping, but when the math works out it pays dividends.
Obviously, there are situations where it is impossible for vendors to offer free shipping. It is important to remain flexible with promotions where shipping expenses could vary. Components of shipping costs — namely, the weight and distance an item is being shipped — can vary tremendously. Over time, these transactions can certainly affect the bottom line. By choosing to offer free shipping in situations that prove cost effective, a retailer can drive incremental sales while not eating too much margin.
The hub and spoke business model is popularly copied by companies with the likes of Southwest Airlines, Amazon.com, and more. Feel free to imitate the competition. A distribution center’s location in comparison to where packages get shipped is critical. If a retailer has centrally located DCs, it may be better equipped to offer free shipping versus those that are less conveniently situated.
Repeat customers consistently prove to be one of a company’s strongest assets. Not only do they work with your business, they more than likely tell their peers about their experiences. The consumer value — in particular, the serving of more generous offers to higher-value or more loyal shoppers — can accomplish the end objective of greater sales in a cost-effective manner. It pays to show your customers you care.
In most cases, retailers simply need to remain competitive. Effective shipping strategies help teams keep the doors open and increase market share. Feel free to speak with a Clarity consultant (800.928.8160), and better understand how your business can reap the same dividends or fill out our form for a free quote.