The Power of Free Shipping (with PartnerShip Savings)
10/15/2013 — Leah Palnik
A current PartnerShip customer found a great way to use the savings they garner from one of our association shipping programs. In this case study, we explore how these savings helped them to implement an effective marketing tool.
With three locations and a large inventory available online, this business is one of the oldest and largest independent bookstores in Southern California.
This bookstore needs to continue to grow its customer base while keeping costs low. Continuing to grow the business involves keeping up with changes in the industry and creating a strong e-commerce presence — a challenge for many independent bookstores today.
Not only do they need to grow their business, but in the online marketplace they need to be able to provide a competitive advantage over bookstore giants like Amazon and Barnes & Noble. With so many options at consumers' fingertips, these larger competitors are able to offer special deals along with the advantage of brand name recognition.
Through an association shipping program managed by PartnerShip, association members including this Southern California bookstore, save on inbound and outbound shipments with select FedEx® services; savings that they can use to reinvest in their business or pass on to customers.
In the past 12 months this business has saved over $42,000 through the program. With these savings, they're able to offer an enticing incentive to their customers — free shipping on orders of $50 or more. This incentive not only provides the customer with a positive buying experience, but it can also increase overall average order size. Customers whose initial orders are $49.99 or less are likely to add another item in return for free shipping, increasing margins on each order.
Free shipping can be a successful marketing tool in today's online marketplace. Many consumers may use another retailer if shipping isn't free, and high shipping costs are a common reason for shopping cart abandonment. This business is now able to combat those potential issues with their free shipping incentive.