Скачать или смотреть How To Offer Free Shipping on Your Ecommerce Store & Still Make a Profit – Episode 1

How To Offer Free Shipping - Episode 1

Here at Cahoot, we’ve created the ultimate guide on how to offer free shipping and still make a profit. Free and fast shipping is the name of the game now. It is a must-have for any seller wanting to get ahead of the pack not only on Amazon but also on other platforms. While shipping may be free for the customer, you’re still paying for it and it’s creeping into your margins.

Keep watching all 10 episodes to learn 50 proven ways you can offer free shipping profitably and radically improve your order fulfillment.

To kick it off, we’re starting with our best tried-and-true methods:
1. Structured Negotiation with Multiple Carriers

With Amazon itself getting into the freight and shipping business, other carriers like UPS and FedEx are doing all they can to retain their customers. For these carriers, every bit of business is important, including yours!
Chances are you’ll get a better deal if you can convince carriers that you are a reliable source of repeat business. First, make sure you have a good understanding of your shipping needs, from your typical weights and delivery speeds to features you need. Then make a formal Request for Proposal (RFP). This will help carriers tailor a good deal for you and It’s also easier to distribute across multiple carriers.
2. Convince Suppliers to Use Your Shipping Account

You might be leaving money on the table if you use your shipping account for only outbound shipments. Since most sellers get inbound inventory shipments from their suppliers, it would be a good idea to convince your suppliers to send them using your shipping account, so you get billed directly for the inbound shipment. This translates to more shipping volume on your account and more volume discounts. Plus, there might be room to negotiate further!

3. Intelligently Set Minimum Order Value

It would be best to avoid delivering low-cost items for free as their shipping costs are often higher than the cost of the item itself, leaving very little margin. Setting a minimum order value in your shopping cart helps you generate enough margin to recover some of the shipping cost. One study has revealed that about half of the shoppers will add more items just to qualify for free shipping. That makes a great case for setting a minimum order value for free delivery.
4. Use Trade or Group Association Discounts

Trade organizations are not just good for the annual conferences and shows, but they offer a lot more advantages to their members. One of them is member carrier discounts. Depending on the size of the organization, you could be eligible for discounted rates of up to 50 percent with UPS and FedEx.
While UPS does not advertise the associations they offer discounts to, don’t hold back from asking your account manager or your association if you qualify.

5. Maximize Ground Shipping Usage
According to a 2017 survey by Bizrate Insights, 9 out of 10 shoppers are willing to wait longer for a free shipment. Hence, using the cheaper ground shipping option may be your best bet.
Consider offering a no rush delivery option for your customers who are willing to wait for free shipping. Ground shipping uses trucks to ship around the country, thereby reducing shipping costs by 50% versus 2-day shipping service, giving you better margins. It’s also good for the earth because truck deliveries produce up to 85% less CO2 emissions compared to air cargo!

To summarize: 1. Negotiate with your carriers, 2. Convince suppliers to use your shipping account, 3. Set a minimum order value, 4. Take advantage of Association discounts, and 5. Choose ground shipping
Thanks for watching the first episode of our series. If you enjoyed our content, please share this post with a friend or colleague who might benefit from this series. Keep an eye out for episode 2 next week in which we will share how to make free shipping work with clever pricing strategies. And lastly, subscribe to our newsletter for even more awesome content delivered right to your inbox. See you next time!

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Learn more about peer-to-peer order fulfillment at https://www.cahoot.ai/ .