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Message
Higher prices + No shipping or Lower prices + Shipping?
Posted on 3/13/18 at 1:08 pm
Posted on 3/13/18 at 1:08 pm
Posed this question in the money thread earlier but wanted to get the OT's opinion as well.
Which do you prefer:
Higher prices + no shipping fees
or
Lower prices + shipping fees
Find there's mixed feelings on whether to prefer shipping fees or not. Of course based on how much the product is. Most retailers charge a shipping fee and some will actually offer free shipping if a customer buys more than X amount.
Just curious about thoughts from sellers/buyers (Etsy or not) about shipping fees.
Which do you prefer:
Higher prices + no shipping fees
or
Lower prices + shipping fees
Find there's mixed feelings on whether to prefer shipping fees or not. Of course based on how much the product is. Most retailers charge a shipping fee and some will actually offer free shipping if a customer buys more than X amount.
Just curious about thoughts from sellers/buyers (Etsy or not) about shipping fees.
7
Posted on 3/13/18 at 1:09 pm to FieldMink
quote:
Higher prices + no shipping fees
Posted on 3/13/18 at 1:12 pm to FieldMink
It really depends on what the available shipping options/prices are. If I can get two day shipping for free, I'd spend a little bit extra.
Posted on 3/13/18 at 1:14 pm to FieldMink
Lowest total price. If they're the same, I go with which shipping is faster.
Posted on 3/13/18 at 1:16 pm to FieldMink
Mentally, I’m far more swayed by free shipping. I’m way more likely to convince myself not to order something if I have to pay shipping, where I’m far more likely to place an order in on the fence about if shipping is free. I’m a sucker for perceived value.
Posted on 3/13/18 at 1:19 pm to TH03
quote:
Lowest total price
This
quote:
If they're the same, I go with which shipping is faster
And this
Posted on 3/13/18 at 1:19 pm to Evil Little Thing
I notice most big retailers charge a shipping fee. At least $5 or so. Some do a "buy x amount and get free shipping". But in terms of something valuing about $8-$10 dollars, shipping fee's would eat most of the profit for the seller.
So would someone be willing to pay $13-$15 for that same product with that shipping included?
So would someone be willing to pay $13-$15 for that same product with that shipping included?
Posted on 3/13/18 at 1:20 pm to FieldMink
Many studies have shown that "Free Shipping" is one of the better ways to increase conversion. That's speaking about eCommerce in general, no clue how different Etsy would be. I have a tendency to think it's even more influential on Etsy's customer base though.
Posted on 3/13/18 at 1:26 pm to FieldMink
quote:
So would someone be willing to pay $13-$15 for that same product with that shipping included?
It depends on how easy it is to comparison shop. But just because Free Shipping is one of the better ways to convert, doesn't mean it's the only way if it's not profitable. Test different discount schemes. I know a lot of sites do the "Save up to $25!" when it's just a 10% discount that caps out at $25.
Posted on 3/13/18 at 1:28 pm to TH03
quote:
Lowest total price. If they're the same, I go with which shipping is faster.
Yeah, this shouldn't be that hard to figure out.
Posted on 3/13/18 at 1:29 pm to FieldMink
All I care about is the lowest total price.
But, if I were running an online store, I'd try to set it up so that shipping was included in the cost of the item (i.e. "free"). I might even go so far as to calculate and display the price with the sales tax included based on their ip address location so that the number they first see is the number they would actually pay. If you're in the business of trying to get people to make impulse purchases, it's better not to give them opportunities to reconsider by then asking them to think about shipping costs and tax, etc.
But, if I were running an online store, I'd try to set it up so that shipping was included in the cost of the item (i.e. "free"). I might even go so far as to calculate and display the price with the sales tax included based on their ip address location so that the number they first see is the number they would actually pay. If you're in the business of trying to get people to make impulse purchases, it's better not to give them opportunities to reconsider by then asking them to think about shipping costs and tax, etc.
Posted on 3/13/18 at 1:31 pm to FieldMink
Posted on 3/13/18 at 1:32 pm to FieldMink
quote:
So would someone be willing to pay $13-$15 for that same product with that shipping included?
It depends on the product for me. I’m more willing to pay a little extra & order shoes from Zappos with free overnight shipping than I am to spend $10-15 less on another retailer’s website with slow shipping.
All last week, I was lusting after these stupid $100 yoga leggings. But shipping on the site was $5.95, and it would take a week to get them. It took me a full week to bite the bullet & order. If I’d seen them on amazon for $105, I would’ve ordered without hesitation.
I realize it’s ridiculous, and I try to remind myself to be logical. But it definitely generates an emotional/gut reaction when shipping is/isn’t free.
This post was edited on 3/13/18 at 1:34 pm
Posted on 3/13/18 at 1:36 pm to spaceranger
I get that. I know right now for instance i have deal/special running to where if said customer buys x amount or more of the product, they'll get free shipping. Also one to where if they buy x amount (different amount), they'll receive 15% off the total ($3 off shipping technically).
Originally i had my shop set up to include free shipping but the margin or return had me profiting $1 and some change compared to the $7-$8 it was priced at. Mind you i'm still new to online selling so trail and error of course. This discovery led me to increase the cost/include shipping as part of that increase
Originally i had my shop set up to include free shipping but the margin or return had me profiting $1 and some change compared to the $7-$8 it was priced at. Mind you i'm still new to online selling so trail and error of course. This discovery led me to increase the cost/include shipping as part of that increase
Posted on 3/13/18 at 1:41 pm to Evil Little Thing
quote:
it would take a week to get them
Good thing about what i sell is that it usually take about 1-3 days. USPS is pretty fast surprisingly. Least so far with the things i've sent out. Of course it'll take longer going to place like new york and jersey.
Usually my customers tend to get their products during the same week respectively.
Posted on 3/13/18 at 1:53 pm to FieldMink
Amazon is the difference for me. I'll gladly pay a few dollars more to Amazon, up to the shipping amount of another online seller, if the item is on prime and I get it in 2 days. I've already paid for prime so that is a sunk cost, I might as well get the benefit of faster shipping. But if it is something I don't need right away, I'll pay for the item and shipping then wait if the total price is lower than Amazon.
My daughter was wanting to order something with some birthday money she received. This retailer only sells on their website, and I couldn't even find it on Amazon outside of Prime. The item was maybe $15, plus $6 shipping. I wouldn't order it on principle. No way I'm paying 40% of the item's cost for an item weighing less than a pound that they're going to stick in an envelope and put in the US mail for $3.
My daughter was wanting to order something with some birthday money she received. This retailer only sells on their website, and I couldn't even find it on Amazon outside of Prime. The item was maybe $15, plus $6 shipping. I wouldn't order it on principle. No way I'm paying 40% of the item's cost for an item weighing less than a pound that they're going to stick in an envelope and put in the US mail for $3.
Posted on 3/13/18 at 2:31 pm to TU Rob
quote:
No way I'm paying 40% of the item's cost for an item weighing less than a pound that they're going to stick in an envelope and put in the US mail for $3.
And to that i completely understand. I know for here however its roughly $6.70 for standard shipping using USPS. Etsy varies based on how far the destination is.
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