Free Shipping Worth More Than A Bigger Discount
from the more-powerful-than-you-might-think dept
For years, there have been controversies (especially among financial types) over whether or not e-commerce shops should offer free shipping, especially as some fear that it takes too big a bite out of the bottom line. However, there's more to free shipping than just the saved money. Researchers are finally starting to look at the psychological draw of free shipping deals. It turns out that people are much happier with free shipping deals than if they just got a discount. There's just something about getting free shipping that feels right -- which could explain why some people get upset when they feel the free shipping is really a bait and switch offer. This points at an issue that isn't really covered in the original article. One of the reasons why people like free shipping so much is that they don't feel tricked at the end of a purchase. Too often, online retailers hide excessive shipping and handling fees and only make them show up at the end. This makes people feel tricked. They were promised one price, but really given another. Offering free shipping makes people feel comfortable that the price they see is actually what they'll pay -- and that comfort level seems to have a clear value to customers. Among retailers, Amazon has clearly realized this. Not only have they resisted pressure from investors to ditch their free shipping policies (on certain orders), but they even came up with a system to get people to pay a flat annual fee to guarantee "free" express shipping. What Amazon realized is that "free" shipping isn't just about not paying as much money (as odd as that sounds), but about the comfort level of customers.
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Office adds on the right.
Green Dinosaur head: "So are you still looking for that attachment?"
Yellow Dinosaur head: *sound of someone choking on his own tongue*
"I see. What application are you using?"
"Office XP"
"Apparently we have to upgrade again."
"When do you think the boss will allow us to remove these stupid Dino masks?"
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It Makes Sense
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Re: It Makes Sense
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Bargain Shopping
I use the internet for nearly all of my purchases for the purpose of money saving and more selection.
When I find the product for a few bucks cheaper I don't want it to end up being more expensive after shipping charges are applied.
I would take free shipping over a minimal discount any day of the week.
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Re: Bargain Shopping
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Free's fine, but I'd settle for clearly priced shi
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Re: Free's fine, but I'd settle for clearly priced
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Re:
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Amazon...
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I'll do this one better...
By the same token, I'd rather pay $200 for a TiVo box and zero for the lifetime subscription fee than get the box free and have to pony up for the subscription. Doesn't make sense, I know, but to me it's a perceived value thing.
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Super Saver
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Went to order a pre-paid phone from T-Mobile, for my daughter, the other day. The price was displayed as $50 but once I put it in my shopping cart the price suddenly became $80. This is well before the shipping charges are added.
There was no explaination that I could find. I checked all over the site. I can only guess that the cost of the included pre-paid minutes was added on.
So since I was feelling tricked the result is the sale will go to the brick and morter store (maybe) and not the on-line store where their over head costs/sale should be lower.
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Mobile Madness
Speaking of ordering mobile phones online. Last January, I ordered a "free" Nokia 6102 phone with "free shipping" from Cingular Wireless' website. Thinking that shopping online would be a win-win proposition for me (I don't have to brave the mall crowds and traffic) and Cingular (lower overhead), I opted to wait a few days for the phone. Having owned several Nokia phones in the past, I was surprised the one delivered was defective. Thinking that the 30 day return policy was a good deal, I called Cingular to make arrangements to return it. No problem with taking it back, but I just had to wait "5-7 business days" to receive a return mailer. Now why can't they just send me an email with that information? Cingular's sales rep could not answer. 1 month later I received the "mailer" (just a bar coded form with no pre-paid envelope) and PAID $15 to send it back. Suffice to say, I would rather brave the crowds and traffic of a brick and mortar store, which I did. Got a great new SDA smartphone from T-Mobile. Good by Cingular!
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Re: Mobile Madness
Iv had to deal with returning products for a while (as a system builder, theres a lot of dead products). iv always had to cut the cost of returns, but its a lot better then getting a product with no warrenty, (you cut the price for the replacment, and shiping both ways!)
i use cingular, and am very happy with the service, when i orderd my phones an plans online, and the price i was told, was the that i paid, in fact, when i got the phones in the mail, they charge on the paper statment was less than the online. i checked my online bankstatment, and found that they infact charged less then they said originally.
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Just this week
Amazon is cutting pennies another way though... my jaw dropped as I saw it with a shipment this week. Normally they are shipped from Lexington, Ky and arrive in Owensboro, Ky in 3-5 days from order via a ground carrier.
This last order listed > 2 weeks as shipping time, and I've watched as it left Lexington Ky via DHL four days after order, went to Ohio, then to Evansville Indiana where they dropped it off at the US Postal Service. My guess now is that I'm waiting for a media mail package that could take anywhere from days to weeks to travel that last 35 miles....depending on the USPS.
Amazon could've spent another 50 cents to a dollar (on this $200 purchase) and shipped this package UPS or Fedex ground and made my purchase experience more enjoyable. Would've make good business sense since I've got over $1000 of books in my wish list.
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sales tax sales
If they were advertising a 10% off sale, I doubt there would be as much excitement.
If the 'hidden charges' don't become an added line item later, people will pay them without complaint.
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Always add in your shipping before buying...
The benefit of web shopping is that most of the time you don't pay sales tax. You also don't put gas in your car to go to the store. And there there's the convenience factor of click and ship. Thats worth something.
I was duped last year on Ebay buying a SD card. Actually, I knew up front that the card was $5 and the shipping was $15. But for that $15 the guy put the card in an envelope and stuck two stamps on it! I got it TWO WEEKS later! If you're going to pull that kind of crap at least ship it Priority, it's not that expensive!
I recently bought some car detailing supplies online. I really wanted to support one site, but after comparing thier shipping costs to a competitor I had to go with the competitor. The difference was significant. Too bad really, but I cant' let that kind of money walk away.
Free shipping is ok, but you still need to compare the end result. Free shipping is meaningless if you are paying more than a competitor. You need to compare all the factors before making a decision, and not get lured in by the "free shipping". Nothing... is free. Its' all added into the price fo the goods.
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Re: EBAY
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Re: Re: EBAY; no one believes your cost for handli
Ebayers are brutal when it comes to 'S&H'.
No one believes it cost $14 to 'handle' that CD mailed for $0.99 Media rate.
Irritating and shell games on final purchase prices will make you money in the short run, but you will go out of business in the long run.
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Re: Re: EBAY
The inflated shipping costs on ebay are forgivable and understandable, the auction pricing schedule is the culprit.
They are not forgivable nor understandable. If you are selling something for a price, then that is the price. If I'm paying $15 shipping for a 1oz item, that thing had better be shipping Express Mail Overnight. If it arrives in a Priority Mail package with the $3.85 stamp on it, I stop payment on the credit card. I have won every one of those contestations using the documentation provided in the sale closing.
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Re: Re: Re: EBAY
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Re: Re: Re: EBAY
When you stop that charge on your credit card I hope you send the item back to the seller.
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Dropped carts
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Yeah, so what about the sellers on eBay who do that but have feedback of 75,000?
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Ebay
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Feel good
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Already there!
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l like cheap prices and free shipping,
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..........THIS IS STUID
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..........THIS IS STUID
Why? Because Everyone Would Want To Buy It Off Of This Website! I Mean Great Name! Great Main Page! But Sell Stuff! But Better Prices Than All Those Other Stores! And Free Shipping And Handling! -
Thank You Very Much!-
Masey McMashion
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Hello,
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pregnancy pillows
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