Online retailers have long used free shipping to encourage customers to buy more products. But a new study suggests that free-shipping promotions can reduce a company’s profits.
The paper, published in May by the Journal of Marketing Research, analyzed purchases made from a single large European retailer and found that free shipping did incentivize customers to buy more. But it also increased purchases of items that historically have higher return rates, such as clothing or products from lesser-known brands. Thus, returns...
Nothing FREE 🙈🙈🙈🙈
What do you think,da!
Amazon has gained crazy amount of benefits anyway.
I’ve never seen “free shipping”. I’ve seen a built in cost. And I know it’s built in because if you find the same product from another vender that charges for shipping, the net price is the same. Every thing has a cost, nobody is giving anything away
Is it not free shipping. It is part of the sale price. Doesn't retail sale in a shop have the shipping costs to the retail store built in?
Doesn’t help profits but it helps gain market share which this market cares more about. See loss leaders like Netflix and Tesla