24/7 free shipping: Positive or negative?

The premise of a recent RetailWire panel discussion was that retailers offering free shipping all the time are doing their e-commerce business a disservice, compared to stores who offer it as an occasional incentive. I happen to disagree:

It’s arguable that offering year-round free shipping is actually a positive, not a negative. E-commerce sites offering free shipping on a consistent basis (even with restrictions on size of purchase or delivery time) are likely to attract repeat business, compared to sites where the benefit is unpredictable. It can be a powerful loyalty tool, for those retailers who can absorb the margin hit.

Think of it as the difference between a retailer offering “everyday low prices” and its competitor offering “high/low” sale pricing.

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1 Response to “24/7 free shipping: Positive or negative?”


  1. 1 Diego Lavia (@DiegoLavia09) July 6, 2014 at 5:26 pm

    Hi,

    I think that nowadays free shipping as become a commodity in the US e-commerce market.
    Obviously it attracts more customers since it is a relief on the hassle of having to calculate or even thinking about shipping.

    Regards


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