Free Shipping Coupons

Previously, I covered how to set up Free Shipping for any order in your store that meets a minimum qualifying price.  This time we’ll cover Free Shipping Coupons in ShopSite Pro.  But before I cover how to set this up, let’s discuss why you would use Free Shipping Coupons instead of ShopSite’s other free shipping feature.

Since free shipping is attained through a coupon this time, it can take advantage of the same features as other coupons, such as limiting which products qualify.  For example, if you had products that were expensive to ship because of their weight or packaged size, you could exclude them from qualifying for free shipping while allowing products that are less expensive to ship to qualify with a coupon.  Another nice feature is that coupons can have an expiration date that is set by the merchant.  By setting an expiration date, the merchant won’t have to worry about disabling the coupon or special offer at a later date.  Finally, coupon codes and links are easily e-mailed, tweeted, or posted to Facebook.  You can use them to market virally (via Facebook or Twitter) or target specific shoppers with rewards or incentives (such as previous shoppers) by e-mailing them directly or through your newsletter.  You can even target new customers by displaying the coupon on the e-mail receipt, encouraging customers to return for future purchases!

To use Free Shipping coupons, you must first enable the feature, and then create the coupons.  To enable the feature, go to Commerce Setup in the back office, select Shipping and scroll down to the bottom of the screen where you’ll see:

Click the checkbox for Enable Free Shipping Coupon Usage, and then select the shipping method that the coupon will provide.  Obviously, you will want to choose your cheapest shipping method to maximize profitability.  In this case, you can see that I selected Ground shipping.  As explained last time, you can also configure which countries can get free shipping.

Now that you have enabled the feature, you need to create a coupon.  To do so, from the Merchandising screen, click Coupons, then Add (or Edit an existing) Coupon:

It is important to describe the coupon (along with any conditions required for it to be valid) in the Coupon Name field.  In this case, I’ve indicated that it is for Ground shipping and that you have to have at least $25 in the cart.  You can see that I’ve set an expiration date, allowed the coupon to be reused by anyone, and applied it to all products in the order.  However, I could easily have configured the coupon to only be valid for specific products.  The Discount Type field is where I specified that this coupon is for Free Shipping, and then I set the minimum amount needed in order to use the coupon.

If I e-mail, tweet, or post the coupon link to Facebook, the Return-to-store page is used when, after clicking on the coupon link and adding the coupon to the cart, the shopper clicks to return to the store or clicks on the coupon in the cart.  Here, I can designate a specific landing page for shoppers that can explain the coupon or display the specific products that the coupon is valid for.

Finally, I’ve entered an easy to remember code for the shopper to use when they enter the coupon from the cart screen – “ship-for-free”.   Once I save the coupon, ShopSite displays the codes and links that I can use.  Below you can see the easy to remember code I selected, as well as a numeric code and links that I could use on web pages or via e-mail, etc.

If a shopper clicks on one of the links above, the coupon would automatically be applied to their cart.  Likewise, they could also add the Coupon Code to the cart and have the coupon applied as shown below

When the shopper applies the coupon, they are alerted that Free Shipping was applied and that the Free Shipping method has been selected for them.  In the shipping pull-down menu, the original shipping cost is also displayed, so the shopper can see that they are saving money.

Next time, more on all types of coupons, not just Free Shipping ones.

Free Shipping Using ShopSite

Last time I covered the use of Free Shipping for increasing your profit and/or obtaining more customers (see Free Shipping – Is It Worth The Cost?)  This time I want to review how you can set up free shipping using ShopSite.

Free Shipping is available in ShopSite Manager and ShopSite Pro.  To access this feature, from the “Commerce Setup” menu, click on the “Shipping” button.  Near the bottom of the Shipping screen you’ll see the following:

From this section, select the minimum amount that a shopper must spend in order to qualify for free shipping.  You will need to decide whether to use the Product Total (the combined product cost before coupons or volume discounts are calculated) or the Subtotal (after discounts, but before tax and handling charges are applied) in determining if the Minimum Amount is reached.  You can also customize the Shipping Option Name to indicate the required minimum amount needed for free shipping, as well as the “Free Shipping Message that ShopSite displays as an alert, indicating that free shipping has been earned.

The next section indicates any restrictions that will be placed on a customer’s location when calculating free shipping.

In the example above, free shipping will only be allowed within the continental United States. ShopSite automatically fills in the zip codes necessary to exclude Hawaii or Alaska by default.

As a shopper, I will see a screen similar to the following when I have $50 worth of products added to my cart.

As you can see, there is an alert message notifying me that I’ve qualified for free shipping on my order.  Also, note that the Free Shipping option has already been selected for me.  If I want to pay more and receive my products quicker, I can still select a paid shipping option for 2-day or overnight delivery.

You might ask, “But what method is used to ship the products for free?”  Well, that’s the beauty of it.  You, as the merchant, determine which method is the least expensive to ship and use that method for your free shipping orders.  Depending on your circumstances, the best method for you may be “ground”, or it could be some other option.  You can indicate to the customer the method that will be used by including it in the Free Shipping Name, the Alert, or wherever you display your shipping options.  You can also just indicate a typical delivery time frame and then, depending on the products purchased, you select the best shipping method for your bottom line!

Next time we’ll cover Free Shipping Coupons in ShopSite.

Free Shipping – Is It Worth The Cost?

Free Shipping.  It seems like most sites offer it, so it must work to increase sales, right?  I know that I’ve added additional products to my cart so that I could get free shipping.  And I know of others that have done so, too.

All the big sites offer some form of free shipping, don’t they?  In checking the web, I see the following free shipping promotions:

  • Amazon.com provides free 2-day shipping to students for a year
  • EddieBauer.com is offering free shipping on any order that includes an outerwear purchase
  • WalMart.com offers free shipping if you have the product delivered to one of their stores
  • BackCountry.com ships all orders over $50 for free
  • Sears.com has free shipping for orders over $99

So, free shipping appears to be alive and well, as long as the shopper meets some requirement.  In trying to find some hard data regarding the relationship between free shipping and sales, I found that merchants could see sales increases of about 15% to 20%, which is pretty awesome!  But, of course, that increase comes at the price of swallowing the shipping costs.

The real question then becomes not whether free shipping increases your sales, but does it increase your profitability or get you new customers?  This is where you get the answer “it depends.”

One article that provides some real data on the viability of free shipping was from F. Curtis Barry & Company.  It is clear from their research that you will need to do some testing on your own to ascertain if offering free shipping will increase your profit.  The article points out the following facts:

  • The majority of the free shipping offers were tied to minimum orders.
  • 80% or more of all major businesses offer free shipping in some form during the Fall and Holiday seasons.
  • Raising prices on unique or exclusive merchandise could cover the cost of free shipping.
  • One merchant indicated they saw a better increase in sales by offering a 20% discount instead of free shipping.
  • There is a lot of concern in the industry that free shipping is conditioning the customer to expect never to have to pay for shipping and processing.

The bottom line is that you’ll have to evaluate not only your position in the market, but also that of your competitors.  If they are offering free shipping, you may need to do the same to remain competitive.  If they are not offering free shipping, then it could be a competitive advantage to you to have it as an option.  You will then need to decide which restrictions are necessary to ensure the shopper purchases enough so that your overall profit is increased when offering free shipping.

Next time I’ll cover how to set up Free Shipping using ShopSite.

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