How your business can offer free shipping without hurting profits

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Not every e-commerce business has to be Amazon, but small businesses may want to use free shipping as a tool to drive sales without wrecking their bottom lines.

After more than a decade with Amazon Prime, online shoppers have gotten used to receiving their purchases in a matter of days for free.

1. Track your costs Shipping costs can be hard to predict. Prices vary by package size and weight, how far each parcel is traveling and how fast it needs to get there. Grace+Love Candle Co., a candle and fragrance company based in Virginia, started by offering free shipping for orders over $50. But after looking more closely at shipping costs, founder Jamahl Grace says he decided to raise the threshold to $75.

Second, right-size your packaging. Since shipping costs are usually based on both size and weight, make sure your most popular order quantities aren’t shipping in boxes that are too big. Also on MarketWatch: ‘We’re growing food for others. We’re close to nature. We’re doing what we love.’ How to retire like a farmer.

 

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