Hers magazine Nov/Dec 2015

Page 75

+ HER BUSINESS

The Myth of Free Shipping during the Holidays BY JAZMYNE CROWDER

D

uring the holiday season is when we often see companies offering free shipping on many of our favorite items. However, have you ever wondered if free shipping is really as free as retailers lead us to believe it is? Although free shipping is an easy way to reel in many customers it seems that businesses would lose more money than they actually make. However, that may not necessarily be true based on the fact that companies can sneak the shipping price in where you least expect it. In fact, a study conducted by Wharton School of Business found that “52% of online shoppers abandoned their virtual shopping carts once they hit the shipping and handling portion of the process.” Particularly during the holiday or peak seasons is when many companies advertise their free shipping option. They

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do it as a way to make their customers feel appreciated but all in all, nothing in the world is actually free. According to Eytan Sebag, “ Like the unicorn, the dragon and the loch ness monster, it’s all made up in the mind, or, more to the point, in the fiscal reports and marketing plan.” A few company shipping strategies include adding the shipping cost into the item itself, requiring you to spend a certain amount so you will receive free shipping, or even giving the customers the option of flat rate shipping. Most businesses use the same strategy to boost their online business sales. The free shipping tactic has been around for quite some time and doesn’t appear to be going away anytime soon. Article Source: EzineArticles.com

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