Case Study: Free shipping or shipping fees?

Topics: Ecommerce | Pricing
For: B2C

👤 Question from

This is a pooled question from the co-founder of Yoseyomo and Tony Cox, president of specialty food marketing agency 5th Food Group.

❓ Question

[Combined and paraphrased]

How useful is it to offer free shipping in ecommerce? Is there a proven impact on conversion rates?

If it needs to be paid, what are the best pricing options? For example:

• Whole dollar (e.g. $100) vs just-below pricing (If so, should it be $.99 or $.95?)

• Flat rates (e.g. $9.99 regardless of order size) vs a shipping table (e.g. $9.99 for orders up to $50, $14.99 for orders 50-$100, etc.)

🎓 Answer

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