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June 29, 2012
Not yet you see
Wrangling our free shipping program into shape.
News - Your October Caption Cont…
I don’t get it. It doesn’t look edible.
News - The Free Shipping Sweet S…
about a year ago
Yes yes yes! This is really what we want to do. This is what we are striving for. More on this tomorrow when its not past my bed time. But yes! This is what we are talking about and working on at SparkFun. Versions of this idea, at least. Simplified. Cheaper. Yeesssssss.
Ditto on what Brennen said. In my mind when I said “we’re not that phat” I was trying to imply that, yeah, we do make money on the stuff we sell.. but we don’t make enough money that we can afford to make 1M less on shipping. In fact (and again, you’ll have to either assume this is truthful or not), we offer our shipping at a break even. We aim for shipping revenue to just cover shipping cost… so, with this program, our shipping revenue was on track to take in 1M less than our shipping cost. Here is a disclosure bomb: we do make a bottom line profit… even if we spend 1M more than we take in on shipping, we still have a positive profit. [How much profit is acceptable for a company like ours? That is for another blog post.. I’d love to have the discussion but it could end up just being a polarizing conversation that doesn’t provide much good.]
that is certainly the way we want to play it… a fair and balanced (sorry for that phrasing, i just made myself ill) approach for items that are too heavy… in the end we over simplified the process - at this time - to keep it simple… for now.
its interesting, generally speaking when someone pushes their order up a bit to reach the threshold that up-sell kind of pays for the free shipping for that order… the truth of the switch to $75 is that fewer orders will have a free shipping option, so it costs us less. but for those who stack their cart just a bit, we both win. so, for us, its less about getting an order to reach up to the 75 level, but rather, having fewer orders actually have a free shipping option… which is sad, because we want free shipping as an option to be MORE available. damn you maths!
We certainly got all math-y and dissected the program 10 different ways… complex approaches did yield some interesting results, but as Frencil notes, keeping it simple prevailed.
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