+1 800 967-0030

What Amazon’s Free Shipping Means For The Rest Of Us

Whether anyone is happy to admit it or not, the fact of the matter is that Amazon has turned the novelty of fast, free shipping into a consistent fact of life for eCommerce shoppers today.

Where once delivery in a week was considered acceptable, today’s online customers are demanding increasingly fast speeds. In recent years, the vast majority of shoppers have come to consider “fast shipping” to mean two-day delivery.

How Can an SMB Compete with Amazon’s Free Shipping Speeds?

There’s a real anxiety among many small- to medium-sized businesses that they’ll not be able to compete with Amazon for speed and parcel shipping prices.

It’s not a fear that’s unfounded, but it shouldn’t keep you awake at night. The truth is that even though you hear lots about how fast Amazon can walk through order fulfillment, there are plenty of 3rd party logistics companies that can help you reach similar speeds at low prices.

Good 3PLs are constantly focused on increasing their warehousing and distribution efficiency so that your orders are processed, packaged and shipped faster and faster. When that speed is made possible by automation, the prices remain affordable for SMBs like yours. Although Amazon led the way to faster shipping, the retail giant has not been the only game in town for some time.

There are a number of ways you can use free shipping without breaking your bank. Give these tactics a try:

  • Offer free shipping with a certain dollar threshold. Many large retailers limit free shipping to a particular dollar amount. This is a very common practice, especially for fashion retailers that also have to handle a lot of returns. Your customers won’t be shocked if you ask them to spend $50, $100 or even $200 to access your fast, free shipping options.Your best bet is to start this offer at a price point where you can make a profit, but is also just beyond your average sale total so more customers feel compelled to buy just one more small thing to qualify.
  • Use free shipping as a promotion. Not all eCommerce shops can afford to offer free shipping all the time, but you should give your visitors some way to earn it. Either offer regular coupons and special free shipping days or create a rewards program that will give your buyers a way to accumulate points that can be redeemed for shipping rewards.Both options give shoppers a way to avoid paying for shipping often enough that they might not mind to pay for it when they must.
  • Make it worth paying for shipping. A third option that some retailers have chosen is to simply not offer free shipping, ever. Some retail experts would argue that this is a dangerous practice, but there are specific cases where it can work. Say, for example, that you sell a unique item that can’t be reproduced by sellers on Amazon.Whether that’s artwork or custom craft items, what you have to sell is only available through your store so if someone wants it, they have to get it from you and pay a reasonable shipping rate. Some will certainly opt out, but if you invest in marketing and product development, your true fans won’t be too put out.

Amazon has changed the way that retailers interface with their shoppers and even how those shoppers feel about paying for shipping. As with all things in eCommerce, though, just because Amazon’s doing it doesn’t mean you can’t or that you even have to try to compete. Free shipping can come in a variety of other forms or you can simply make it worth it for consumers to pay to ship your product.

 

August 01, 2017
Share This:

Related Posts

RECENT POSTS

3 Things to Consider When Choosing the Best 3PL Company

When you are getting ready to partner with a 3PL company, it is important to do your research and keep an eye out for certain characteristics. When you are getting ready to partner with a 3PL company, it is important to do your research and keep an eye out for certain...

Growing Your E-Commerce Business in 2021 (Part 3: Technology)

This article is part of a series that also explores the latest e-Commerce trends and what today’s consumers want.  If 2020 has taught us anything, it’s that sometimes things don't go as planned. Businesses of all sizes and types were forced to make quick pivots to...

Growing Your E-Commerce Business in 2021 (Part 2: Customer Service)

This article is part of a series that also explores the most important e-Commerce trends and the latest technology. The events of 2020 have caused the world to change a lot in a short amount of time. People now live, interact, and shop much differently, and their...

Growing Your E-Commerce Business in 2021 (Part 1: Trends)

It has now been over a year since the coronavirus lockdowns began in the U.S., and businesses of all types have been forced to adjust and evolve. The e-Commerce industry was one that boomed in 2020, with U.S. consumers spending over $861 billion online- an incredible...

3 Things to Consider When Choosing the Best 3PL Company

When you are getting ready to partner with a 3PL company, it is important to do your research and keep an eye out for certain characteristics. Whether you are selecting your first 3PL partner or switching providers, we recommend choosing a 3PL company with proven...