Free Shipping or Not? Retail Platform Operations Considering …

Consumer behaviors profoundly affect platform competition. This study incorporates consumers' reference effect (RE) and loyalty into a Hotelling model, examining competition between two …

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Free Shipping Promotions And Product Returns - JSTOR

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Row H, in Table 8, Panel A, shows a profit contribution of €12,157.07 with free shipping promotion, and €12,237.49 with-out; that is, the firm incurs a slight loss from free shipping …

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The Psychology Of Free Shipping: Why It Works As A Marketing Tool

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Jul 14, 2014 · This is why 60% of ecommerce companies cite “free shipping with conditions” as their most successful marketing tool. If you are an ecommerce business, optimizing your free …

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The Psychology Behind Free Shipping: Does It Work? - Crazy Egg

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Oct 5, 2017 · One of the most strategic innovations in the free shipping technique is setting a minimum order. In order to qualify for free shipping, the purchaser must buy $50-100 worth of …

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FAQs about Free Shipping or Not? Retail Platform Operations Considering … Coupon?

How does free shipping affect consumer behavior?

Free shipping influences consumer behavior on a deeply psychological (and often irrational) level, adding a powerful boost to your average order value. If you need help finding your ideal free shipping threshold, be sure sure to check out this how-to guide. ...

Why is free shipping so important?

Specifically, offers of free shipping tap into how we rationalize our shopping behaviors, the psychology of choice, and the value we place on the concept of “free.” Most shoppers are still more accustomed to the offline store than the online environment. ...

What percentage of customers expect free shipping?

In fact, 75% of consumers now expect free shipping, even on orders below $50. This is up from 68% in 2017. As a result of this expectation, customers are much more likely to shop with, and repeatedly shop with, companies which offer free delivery. ...

Is free shipping a new trend?

Although it's a relatively new phenomenon, it's gained traction fast, and because of this, free shipping is now something customers are conditioned to expect when shopping online. In fact, 75% of consumers now expect free shipping, even on orders below $50. This is up from 68% in 2017. ...

How can free shipping improve customer experience?

Another way to enable free shipping is to increase the customer’s lifetime value, which means consistently buying from a certain brand and by offering free shipping also building a good customer experience. Offering bundles is the third way to ensure that free shipping is worth offering to customers without losing money. ...

Is free shipping a good idea?

Instead, free shipping is a nice bonus to boost conversion rates. In the minds of consumers, cheap shipping isn’t tied to the quality of the item itself. Again, free shipping is great. But it’s not always the right answer. ...