Hey guys! we have always used "free express post on orders over $29" as a drawcard for our business. Its been good to us, but lately we have been having second thoughts looking at out competition. Does "$40 with free express post" sound better than "$32.50 + $7.50 express post"? I take into cosideration thing like looking at other websites you have to do a mock order to get the post price which involves 3-5 clicks but with ours you know on the spot. The question for us is, if there are 2 ads side by side, one says $32.50 and the next says $40 free post, which would you click on? Our business aims at a younger demographic so which one would influence the younger generations more? For me, i check out a few websites, get the post figures, do the math and buy from the cheapest. But does everyone do this?
This is Dallas from the Shopify Social Care team.
When it comes to the shipping process for your customers the trick is to make it as simple as it possibly can be. Even though $32.50 + $7.50 = $40 having one simple price looks like less money which will make it more appealing for your customers. I also suggest that you put the 'Free Shipping' part at the beginning so the major selling point is right in the forefront of what you're trying to get across to your customer. 'Free Shipping for carts over $40" is a great option, but something like "Spend $40, Get Free Express Post" is another great option!
I can speak from personal experience that I do math when it comes to what I am going to spend at a store, but I know that that isn't how everyone functions. In that case the simpler the better to capture attention as quickly as you can.
I was also thinking that you could take 1 cent off the price your customers have to spend for shipping in order to make the price seem lower. The difference between $40 & $39.99 is one cent, but the fact that the one cent puts first number in one price into a whole lower price bracket (30s instead of 40s) is definitely a selling point to make some customers buy. That is actually a major marketing tactic that big businesses use to make prices seem lower than they are.
Let me know your thoughts on what I have suggested.
I think a combination of both would be best.
A flat shipping rate up to some amount (say $50) and free if the purchase total is that amount or higher. This has a number of advantages. It means people can still make small purchases without costing you money, it encourages people to 'top-up' to get the free shipping, and it simplifies your shipping calculations for your customer and yourself (this shouldn't be underestimated - automating complex shipping calculations is not trivial - it will cost you either in apps or developer time). Finally, just do a search for 'free shipping study'. It is a huge purchase incentive. Convenience is king - not cost.