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Does free fulfillment shipping and handling work in attracting more ecommerce business?

 

A recent study by Curt Barry of F. Curtis Barry & Co. did not find any concluding evidence on whether free shipping services result in higher quantities of fulfillment orders. Most of the merchants interviewed were not convinced a free shipping and handling strategy is working.

 

The shipping and handling fees can be the largest expenses for a company. If those fulfillment fees are forfeited they can have a very negative impact on the bottom line, especially given that sales are soft.

 

S&H fees are typically comprised of the order fulfillment charges for picking and packing. The other large component is the carriers’ fees that may spike due to misc. accessorial charges and fuel surcharges increasing proportionally to the price of barrels of oil.

 

It is commonly believed that 50% - 70% of a company’s business is comprised of one time buyers who do not return. When adding free S&H to the cost of the initial acquisition for that customer, the cost of that sale becomes staggering.

 

One way to avoid this trap is to offer unique merchandise and offer very specific triggers to buy. Enticing the customer to buy and demonstrating the product is desirable may cause the customer to simply pay the shipping and handling fees.

 

For the complete story please click here.

 

US Post Service rate increase

 

As expected, USPS has announced its rate increases, effective May 11, 2009.

 

In addition to the price increase for the 1-ounce First-Class Mail stamp from 42¢ to 44¢, Standard Mail, Periodicals, Package Services (including Parcel Post), and Extra Services will also change. Prices for most shipping services, including Express Mail and Priority Mail, were adjusted in January and will not change in May.

 

Does free fulfillment shipping and handling work in attracting more ecommerce business?

 

A recent study by Curt Barry of F. Curtis Barry & Co. did not find any concluding evidence on whether free shipping services result in higher quantities of fulfillment orders. Most of the merchants interviewed were not convinced a free shipping and handling strategy is working.

 

The shipping and handling fees can be the largest expenses for a company. If those fulfillment fees are forfeited they can have a very negative impact on the bottom line, especially given that sales are soft.

 

S&H fees are typically comprised of the order fulfillment charges for picking and packing. The other large component is the carriers’ fees that may spike due to misc. accessorial charges and fuel surcharges increasing proportionally to the price of barrels of oil.

 

It is commonly believed that 50% - 70% of a company’s business is comprised of one time buyers who do not return. When adding free S&H to the cost of the initial acquisition for that customer, the cost of that sale becomes staggering.

 

One way to avoid this trap is to offer unique merchandise and offer very specific triggers to buy. Enticing the customer to buy and demonstrating the product is desirable may cause the customer to simply pay the shipping and handling fees.

 

For the complete story please click here.

 

US Post Service rate increase

 

As expected, USPS has announced its rate increases, effective May 11, 2009.

 

In addition to the price increase for the 1-ounce First-Class Mail stamp from 42¢ to 44¢, Standard Mail, Periodicals, Package Services (including Parcel Post), and Extra Services will also change. Prices for most shipping services, including Express Mail and Priority Mail, were adjusted in January and will not change in May.

 

 
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 contact a fulfillment specialist
 fulfillment price quote?

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