The Real Cost of Free Shipping

When it’s time to expand their business to international markets, many e-commerce business owners can feel stuck with unappealing shipping options. They're left choosing between raising product prices to cover the real cost of fast “free” shipping, or keeping prices low but charging customers the actual cost of shipping.

Both options can potentially send customers running from the checkout. “I don't like to play the ‘free shipping’ game, because it's not really free shipping,” says Jennifer Tilney, owner and president of Platinum Skin Care, an online retailer that specializes in anti-aging and medical-grade skin care products. “You’re adding that shipping cost to all of your other products. I would prefer to keep our products priced at a genuine level.”

Bradley Mills, fulfillment manager for Troll and Toad, an online gaming and collectibles business, agrees. “We have thousands of stocked items on the cheaper end, so we were running into issues where customers needed an affordable shipping option.” For e-commerce retailers like Jennifer and Bradley, that meant looking for a shipping solution that could keep their product costs reasonable and customers incentivized to purchase.

But price isn’t the sole factor that keeps customers in the e-commerce checkout line—speed of delivery is important as well. Overall, 56% of all abandoned carts are shipping related,¹and 32% of shoppers have abandoned a purchase because the shipping time just wasn’t fast enough.² But paying for that fast delivery can be just too pricey for some shoppers. “They've accepted the cost of whatever the product is,” recounts Jennifer, “and then they get to the shipping, and a lot of times they’re like, oh, gosh! That’s just too much. Just forget it.”

Is it possible to provide both fast delivery and affordable shipping costs? Looking at the services provided by FedEx^® International Connect Plus (FICP), the answer is a resounding yes. FICP offers a cross-border shipping solution for e-commerce businesses, with day-definite delivery that balances the speed and affordability they’ve been looking for on behalf of their international customers. The service is available for shipments that weigh less than 70 lbs. and do not contain hazardous materials.

A balance that works

When Premiere Book Group started shipping with FICP, they saw results right away. “It’s helped us offer shipments at a much lower rate,” says Joel Strycharz, president of the company, which is one of the largest independent booksellers worldwide. “We’re able to hit more zones than ever before, and it’s still a very affordable cost for everyone.”

For e-commerce retailers looking to expand their business to international shoppers, FICP can provide access to people in 198+ countries and territories and promises delivery in as little as 2 days. Shippers can request to customize delivery options with FedEx Delivery Manager^® and receive near-real-time tracking and notification options for full visibility. In short, FICP helps retailers deliver a fast, quality shipping experience while maintaining affordability for shoppers, which is good news for everyone.

“The savings [were] huge. We’re able to save thousands of dollars a year as a result, so we can’t be more happy with it,” says Jared Swan, who uses FICP to ship products for Chapel Library, a nonprofit, donation-funded ministry of Mount Zion Bible Church. “We like to be good stewards of the money that’s given to us. So for FedEx to come through means we’re being more efficient and that means more to us than just about anything.”

Creating global communities

FCIP’s overarching goal is to connect enterprising e-commerce retailers to shoppers around the world and in the process transform transactional networks into global communities. Part of what makes that possible are the FICP account representatives, who can help retailers facilitate more customer-focused solutions for their international shoppers.

For Joel, it’s already working: “We’re seeing lots of positive responses from our customers.” Jennifer’s seeing the results through the purchases themselves. “It makes it easier for people to purchase when it’s affordable. Now they’ve got nothing standing in their way.”

“It makes it easier for people to purchase when it's affordable. Now they've got nothing standing in their way.

Jennifer Tilney

Learn more about how FedEx International Connect Plus can help your business. Read more articles here.

Platinum Skin Care provides anti-aging and medical-grade skin care, acne treatment, peels, and body care products for their customers’ needs.

Troll and Toad is a 25-year-old online gaming business that sells trading cards, collectible cards, and board games and provides a place for users to sell their old games.

Premiere Book Group is an independent bookselling business in operation since 2003 with solutions to market and sell book titles across a range of business channels.

Chapel Library is a nonprofit ministry of Mount Zion Bible Church whose mission is to send Christ-centered materials from prior centuries worldwide.

The real cost of free shipping

The real cost of free shipping

The real cost of free shipping

A balance that works

Creating global communities

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