How Much Does Free Cost?
A lot of retailers tout “Free Shipping” in their subject lines. I am sure it helps to increase not only open rates but overall purchases. But how many email subscribers feel bamboozled when they realize they have to spend a minimum amount to get that deal.
I am guilty of having $23.00 in my shopping cart at Amazon and end up with $45 of purchases just to get free shipping. It would have been cheaper for me to pay the shipping on my intended purchase, yet psychologically I felt like I need to get that free shipping.
Does “Free Shipping” from Steve Madden mean that subscribers of their email marketing campaign who want to partake in this offer will buy two pair of shoes instead of one to reap the benefits of said “free shipping”?
And how does no minimum purchase from Nike, in the example below, affect their overall sales? Are consumers likely to only purchase what they came for because there is no minimum purchase?
Free Shipping is a good tool to offer your subscribers an opportunity to “save”, and adding a minimum purchase amount to the pot is a great way to stir up extra revenue.
Posted by MindComet on Jul. 10, 2007
I think where Amazon does well (with me at least) is that the minimum cost for shipping tends to be just a little bit more than the average price of what i’m buying. Whenever i’m purchasing something i have a bad habit of also adding something else i was considering just to get that extra discount!
Posted by James on 07/10/2007 05:58 PM