Posts Tagged ‘Free Shipping’

Free Shipping This Holiday Season

Monday, December 5th, 2011

Posted by: Molly Griffin, Marketing Associate

Free shipping has become one of the most popular incentives offered by eCommerce retailers during the holiday season to increase online sales.  According to ComScore, free shipping promotions have helped to boost spending as over half of all online transactions so far this holiday season have involved free shipping. Comscore also reported that in the 2010 holiday season, consumers who received free shipping on an order spent about 15% more than those who did not.   If you haven’t joined the free shipping trend this year, it might be time to give in and accept that the incentive could  help  increase your online sales.

One way to incorporate a free shipping offer this holiday season is to sign up for Free Shipping Day 2011 on December 16. The Free Shipping Day event has already attracted more than 1,500 registered merchants who will offer free shipping for the 24-hour period with guaranteed delivery by December 24th.  Last year’s Free Shipping Day was the third heaviest online spending day of the year at $942 million, so don’t miss out on this great opportunity to capture new sales.

To register, simply sign up on the Free Shipping Day website  by selecting the ‘Merchant Sign-Up’ link, providing a quick summary of your business on the online form, and then selecting the product category that you wish to be listed in on the site. Best of all participation in the program is free for merchants and it’s a great opportunity to generate new traffic to your site.

Before you register for this 24hour event, you should evaluate the impact the day might have on your eCommerce business. You want to ensure that you can offer free shipping to customers while still making a profit on December 16, 2011. One option to can consider is offering free shipping on orders over a certain amount, which would still qualify you for a listing on the Free Shipping Day website.

You also want to make sure that your eCommerce site is equipped to handle the influx of orders that will occur on December 16, 2011.  Take a minute to check out Dydacomp’s best practices for online retailers during the holiday season to help guide you to ensure that your online store is prepared to handle this busy holiday Season.

 

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Posted in Ecommerce, Industry News, Multichannel Order Manager | No Comments »

How to Setup Free Shipping in M.O.M.

Thursday, January 20th, 2011

Posted By: Art Vivino, Technical Support Supervisor Art Vivino, Dydacomp Technical Support Supervisor

There are many different incentives to get your customers to purchase your products. One popular method is to offer your customers free shipping on orders. This is easy to set up in Multichannel Order Manager (M.O.M.) and there are several ways to allow  free shipping on an order.

One way to achieve this would be by creating a shipping method that would not charge anything to the customer. This is done by going into the Maintain drop down menu and selecting the Shipping Methods option.  You can then use FRE, for example as the code to be used on an order. This method would be sent to, not charged to the customer.

Ex: This is done by leaving the box ‘Actual Charges’ unchecked. Also, do not add any additional charges such as ‘Per Box Charge’ or ‘Per Invoice Charge’

The invoice sent to the customer would show 0.00 for shipping.

If you wish to show on the invoice that you gave the customer free shipping, you would create a new stock item in M.O.M. called ‘Free Shipping’. Mark this as a service item and leave the unit cost and price as 0.00. When added to an order, you can change the unit price to the negative amount of the shipping total.

Ex:

Another method to offer free shipping is by using an Order Promotion. This is done by going to the Maintain drop down menu,  followed by the Advertising Information option and select Order Promotions.

You may want to allow this promotion to only those customers that meet specific criteria. This may be Source Key given to them via an email advertisement.

Or by using a particular customer type.

Hope this clears up any questions you had  on how to apply free shipping in M.O.M..

Let us know if you have any questions or if there is anything we can help you with!

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The Cyber 5

Tuesday, December 7th, 2010

Posted by Rob Coon, President of Dydacomp

Black Friday marked the start of the holiday shopping season for retailers and shoppers alike. This year consumers began their holiday shopping on Thanksgiving Day with about $407 million in sales and  continued into Black Friday with sales totaling about $648 million. ComScore is reporting that e-retailers netted $1.028 billion in sales on Cyber Monday. They also reported an increase of 19.9% in spending from last year and a 31.1% increase in spending on Monday over that on Black Friday. Another positive number from Cyber Monday’s sales is that the average online order value increased from last year 8.3%, the average order value rose from $180.03 to $194.8.   Many retailers are referring to the Thanksgiving weekend (Thursday through Monday) as the Cyber 5 due to the high volume of ecommerce sales over that entire weekend.

These numbers are a promising reminder that consumer confidence is growing. Even though consumers are more willing to spend money this year, they are entering the situation more educated than in past years. Consumers are shopping smarter with the help of various online resources, such as shopping comparison engines, to help them seek out and find the best deals available. Ecommerce retailers should focus on continuing to providing shoppers with promotions, gift ideas, visual navigation, and other ways tot make shopping easy and efficient. Customers want to be able to go to your store, find a gift, and complete the order quickly so retailers must ensure that their site offers an enjoyable shopping experience. Stores must remain on top of their game and should try to change up the sales promotions and keep them running throughout the holiday season to ensure that the customers will continue to spend.

Free shipping has been one of the biggest trends this holiday season as most of the large online retailers began announcing free shipping for online orders the week before Thanksgiving. According to ComScore, free shipping has become a more prominent promotion for online purchases and 77% of online consumers indicated free shipping was important.  This is just one of the ways stores are hoping to continue to attract consumers throughout the holiday season.  The Cyber 5 have come and gone and the challenge now lies in keeping consumers shopping throughout the month. Ecommerce retailers should continue using promotions that are attractive to consumers without hurting the chances of a profit.

The Cyber 5 hopefully serves as a preview of the remaining holiday season, but, it is up to the retailers to stay on top of their game and continue to drive traffic to their online shopping carts.  How did your ecommerce store do during the Cyber 5? What strategies worked for you?

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Should You Ship Free for the Holidays?

Friday, October 19th, 2007

The holiday shopping season is starting early this year with more competitive offers from online and catalog merchants. An article in The New York Times on October 8, 2007 points to free shipping offers as the key to winning holiday gift business. The article points out that L.L. Bean got out ahead of the pack with an early offer of free shipping without a minimum purchase. Although customers are drawn by the savings, making the leap to unconditional free shipping requires careful consideration on the part of the merchant.

The biggest objection to unconditional free shipping is that it severely diminishes the profit margin on purchases and average order size drops. As a high volume and profitable company, L.L. Bean can afford to take the hit, in hopes of attracting new customers. The “must ask” question then becomes, if your free shipping offer does not grow your customer base significantly, providing long term ROI, can your business afford the loss? Noting the metric that “54 percent of online retailers had tried unconditional free shipping offers, but fewer than half said they would use the tactic this year,” the statistics don’t inspire a great deal of confidence.

For many, conditional free shipping and limited time offers on free shipping may provide a safer field for experimentation. To create an offer that protects your business:

  • List which items carry the highest shipping costs. Consider excluding these items from the offer – see the article’s example of L.L. Bean excluding items like canoes and couches.
  • Use your web design and navigation to lead customers to the items you want them to buy. Choose products that both perform well and carry lower shipping costs and place them on the front page or in a special holiday gift section.
  • Let cross-sells help increase average order size. Look at popular product offerings and match them with items that either match or are in the same interest area, like a sweatshirt and matching pants or a fly rod and tackle box.
  • If you offer free shipping for a limited time only, choose the period wisely. Shipping ground will take some time, especially as holiday shipping volume increases, so ideally your free shipping period should be well before Christmas so you don’t lose the goodwill you’ve created with late deliveries.

Do you have any great holiday strategies you’d like to share or perhaps your experience with free shipping offers? Post a comment to share them with us and with other M.O.M. and SiteLINK users. We look forward to hearing from you!

Al Pascale
Director of SiteLINK Services

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Posted in Dydacomp News, Ecommerce, Search Marketing, SiteLINK News | No Comments »