Why Free Shipping Can Be Bad for Small Businesses
Free shipping sounds fantastic. As a customer, I like it too. If I am comparing two websites and one wants €8 or €10 for delivery while the other offers free shipping, I know which one immediately looks more attractive. I have chosen the free-shipping option plenty of times myself. Occasionally I have even thought afterwards that I should probably have supported the smaller business instead of giving my hard earned money to a large faceless entity. The post purchase guilt trip is never easy. The problem is that shipping is never actually free. Somebody is paying for it. For a large retailer, absorbing that cost can be relatively easy. For a very small business, particularly one making or selling low-margin products, free shipping can quickly turn a perfectly reasonable sale into a transaction that barely makes any money at all. I know because I tried it. I Kept Increasing My Free Shipping Threshold When I first introduced free shipping on my own website, I think my threshold was somewh...