Jeff Louderback's Write Perceptions

Small retailers expect welcome sales jolt from Free Shipping Day

When the inaugural Free Shipping Day was held in December 2008, retailers embraced the event because it extended the online holiday shopping season and created substantial exposure that the merchants otherwise would not have seen. This is especially true for small retailers, many of which set single-day sales records and web site traffic. Because of this, it is no surprise that most retailers that participated last year have signed up for this year’s Free Shipping Day, which is set for Thursday, December 17. Last year, 250 merchants participated. The number for this year’s Free Shipping Day is 585 and counting.

 

“We received an enormous amount of online, print and broadcast media coverage, and that created awareness for Free Shipping Day and the retailers that participated,” Knowles said. “Smaller merchants especially benefitted because it was free exposure that introduced them to consumers who could become repeat customers.”

 

Free Shipping Day (www.freeshippingday.com) represents the last possible 24-hour period when online shoppers can place their orders with guaranteed delivery by Christmas Eve. The event has attracted the major retailers that have deep marketing budgets. For smaller merchants, Free Shipping Day has emerged as profitable in many ways.

 

Julie Swatek, who is founder and president of Scrap Your Trip (www.scrapyourtrip.com), was hesitant to try free shipping until she learned about last year’s Free Shipping Day. She decided to participate, giving customers free shipping on orders of at least $59. The result was a 92 percent increase in sales over the previous day.

 

“We were so stunned with the response that we had to work overtime to fill the orders,” said Swatek, whose company sells travel and scene-specific scrapbooking materials. “This year, we know what to expect, so we are working hard to make sure we are completely caught up so on December 17 can just focus on orders generated from Free Shipping Day.”

 

Swatek was so impressed with the response created by Free Shipping Day that she decided to implement free shipping for customers at the beginning of 2009. As a result, Scrap Your Trip’s average order has increased 23 percent over last year.

 

Kari Kraichely of Charm Boutique (www.charm-boutique.com), which sells handmade jewelry and gifts, said her site set a single-day record for traffic because of its participation in last year’s Free Shipping Day. In preparation for December 17, Kraichely has increased her staff to fill the anticipated orders.

 

“We don’t have the marketing budget of a big retailer, so Free Shipping Day represents a great opportunity to increase our customer base,” Kraichely said. “We already offered free shipping before we participated in last year’s Free Shipping Day, but since the event gave us exposure to people who didn’t know about us, we had a lot of repeat sales throughout the year.”

 

Knowles expected a favorable response from retailers and consumers last year, but he didn’t anticipate the overwhelming interest that the event actually received. The FreeShippingDay.com web site saw 250,000 hits in a 10-day period, including 100,000 on the actual day itself.

Free Shipping Day is enticing retailers and consumers alike

Ft. Collins, Col. – Now that Black Friday and Cyber Monday have passed for another year, retailers are searching for a way to extend the holiday shopping season, and procrastinating consumers are looking for options to find that last-minute gift. It’s a perfect time for Free Shipping Day (www.freeshippingday.com).

Set for December 17, Free Shipping Day represents the last possible 24-hour period when online shoppers can place their orders with guaranteed delivery by Christmas Eve. More than 450 retailers have already signed up to participate, eclipsing last year’s final tally of 250. Free Shipping Day creator Luke Knowles expects the number to surpass 500.

“Numbers show that online shopping dramatically slows after December 12th,” Knowles said. “Free Shipping Day encourages people to continue buying items online later into the month of December, and obviously this is appealing for retailers.”

Knowles - who created FreeShipping.org with his wife, Maisie, in 2007, hatched the idea for Free Shipping Day in just two weeks before the event last December. In an abrupt brainstorm, he thought that retailers would relish the opportunity to extend the online holiday shopping season, which typically peaks in early December because consumers are concerned about their gift orders arriving to their intended destination in time for Christmas.

Knowles expected a favorable response from retailers and consumers last year, but he didn’t anticipate the overwhelming interest that the event actually received. Free Shipping Day attracted more than 250 merchants and the FreeShippingDay.com web site saw 250,000 hits in a 10-day period, including 100,000 on the actual day itself.

“This year, we have had all year to prepare for Free Shipping Day,” Knowles said. “We know more what to expect and merchants know what to expect. They had a good experience because of all the traffic they received during last year’s Free Shipping Day, and more exposure leads to more interest from retailers.”

Free Shipping Day will be even more attractive for consumers because a higher number of retailers are offering free shipping on all orders.

“Merchants asked how they could get better placement on the Free Shipping Day web site, and we are giving them a more prominent location if they offer free shipping on all orders,” Knowles explained.

“We would like to reach point where the majority of retailers are offering free shipping on all orders,” he added. “That will make better experience for shoppers because there will be better deals.”

FreeShipping.org introduces price comparison search engine powered by PriceGrabber.com

When Luke and Maisie Knowles debuted FreeShipping.org in November 2007, the husband-and-wife entrepreneurs saw a need for a one-stop destination where consumers could find online retailers that offer free shipping deals. About two years later, their vision was proved correct as the site now features more than 1,590 merchants that offer free shipping coupons. The Knowles continue to evolve the site – the latest addition being a section powered by PriceGrabber.com where visitors can compare the prices of thousands of items with free shipping offers.

 

PriceGrabber.com – where shoppers can instantly find and compare millions of unique products and services contained in 25 channels (such as Clothing, Babies & Kids, Books & Magazines, and Cell Phones among others) - is providing the technology and FreeShipping.org is hosting it on the site. This allows consumers on FreeShipping.org to search by product, instead of solely by store, and find free shipping deals and compare prices. There are 25 categories of products, from appliances and auto parts to toys and video games.

 

“We are consistently striving to evolve FreeShipping.org to make the site more user friendly for consumers and even more effective for retailers,” Luke Knowles said. “Partnering with a fellow innovative company like PriceGrabber.com enhances the experience on FreeShipping.org for shoppers.

 

“Before, visitors to the site had to visit a particular retailer’s section on the site and search for products from there,” Knowles added. “Now, they can click on the ‘Compare Prices” tab on our home page and search for free shipping deals by specific products.”

 

For example, under the book category, there are multiple subjects. Click on Health & Fitness, for instance, and a menu of topics within that category are displayed (from acupressure and acupuncture to yoga). When you click on Yoga, an array of specific titles appears, and you can compare the prices. Of course, all items are offered with free shipping

 

The partnership with PriceGrabber.com is the most recent addition the Knowles have made to FreeShipping.org since the site debuted. Last year, FreeShipping.org introduced My Favorite Coupons, a section that allows visitors to create their own page and select coupons from specific merchants. Earlier this year, the site introduced the Go Frugal blog, which offers valuable tips and money-saving ideas from the web's foremost deal-hunters, savvy shoppers and cost-conscious bloggers. The enhancements are part of the Knowles’ mission to make FreeShipping.org a must-visit destination for cost-conscious consumers.

Founders of Coupon Sherpa introduce newest web sites centered on frugal living – Mr. Free Stuff and Mrs. Sweepstakes

Who says finding bargains and saving money can’t be fun? That is what Mr. Free Stuff and Mrs. Sweepstakes ask. The cartoon characters - Mrs. Sweepstakes is Mr. Free Stuff’s better half - represent the newest online destinations in Luke Knowles’ frugal living theme.

 

In April, Luke Knowles debuted Coupon Sherpa (www.couponsherpa.com) with his wife, Maisie Knowles, and his brother, Jesse Knowles. Coupon Sherpa allows iPhone and iPod Touch users to access in-store coupons from their mobile device and present that coupon to the cashier at the participating merchant. Mr. Free Stuff (www.mrfreestuff.com) is a site where visitors can find free samples and free products. Mrs. Sweepstakes (www.mrssweepstakes.com) is a source of online sweepstakes and contests.

 

“We were inspired by ‘The Incredibles,’ except in our case we have a super hero family of characters that represent their own money saving web sites,” Luke Knowles said. “Coupon Sherpa, Mr. Free Stuff and Mrs. Sweepstakes are all professionally designed and managed web sites, and we wanted to give them a whimsical feel, so we created characters for each site.”

 

Mr. Free Stuff features offers for freebies in a variety of categories, from Audio & Music and Animals & Pets to Home & Office and Sports & Fitness. On a recent day, the home page showcased access to a free coupon for a Mars Candy Bar, a free quart of eggshell paint from Glidden, a free sample of Hugo Boss Element cologne and a free one-day invitation to shop at Sam’s Club.

 

Mrs. Sweepstakes provides consumers a one-stop destination for an array of traditional sweepstakes that award cash prizes, but it also informs readers on contests for shopping sprees, products, vacations, gift cards and tickets among other items. A recent day’s listings included contests such as a $1,000 Bloomingdale’s shopping spree, tickets to see Britney Spears in concert in Los Angeles, $2,500 worth of gasoline, and a year’s supply of Kraft Mac & Cheese.

 

On both sites, all visitors have to do is click on the links to sign up for the offers.

 

Mr. Free Stuff and Mrs. Sweepstakes represent the two newest additions in Knowles’ initiative to create a cluster of web sites focused on frugal living. More sites with specific themes are under development.

 

“Especially in the midst of a sluggish economy, people are interested in opportunities to save money, get free products and services and win prizes,” Knowles said. “We are striving to make it easy for consumers to find money-saving offers in a central location.” 

Go Frugal blog’s Best Time to Buy Guide offers consumers guidance about how to save money on more than 45 products

Timing is everything. The old saying especially applies to consumer purchases. You can save hundreds and even thousands of dollars every year by knowing the best time to buy products - from automobiles, appliances and furniture to clothing, cookware and linens. With this in mind, Luke Knowles has created the Best Time to Buy Guide for more than 45 products. The in-depth feature is available on his popular “Go Frugal” blog at http://www.freeshipping.org/blog/best-time-to-buy-guide.

 

Knowles understands this concept first-hand. In December 2007, he and his wife, Maisie Knowles, co-founded FreeShipping.org, which is a one-stop destination for consumers to find online retailers that offer free shipping deals. The site grew rapidly and it now features more than 1,320 merchants. Knowles - who also wrote an e-book about free shipping and recently created Coupon Sherpa (www.couponsherpa.com), an application that allows iPhone users to access coupons on their mobile device – hatched the idea for the Best Time to Buy Guide when he started conducting research for his own use.

 

“We are having a house built, and within weeks we will need to make several purchases, such as furniture, appliances and electronics,” Knowles said. “We were curious about when we should buy these products, and that made me realize that other people would be interested, too.”

 

Among the items detailed in The Best Time to Buy Guide are:

 

Big Appliances

The new models for large appliances roll out in September and October, so stores will be working to make room by discounting previous models. Some stores will keep older inventory in stock through the holiday months and then reduce what ever is left at the beginning of the new year.

During the rest of the year look for holiday sales around Memorial Day and Independence Day.

Best time to buy big appliances: October and January

 

Cell Phones

The best deal on a cell phone is offered when signing up for new service. Consider moving to another carrier, if you are at the end of an existing contract. Another way to save on cell phones is with rebate savings. "Free After Rebate" offers are made on most every popular phone at some point. Pricing usually includes a combination of instant savings and a rebate. The best time to buy is when you can get a cell phone for free, either by signing up for new service or with "cash back after rebate" offers.

Best time to buy a cell phone: When starting a new contract

 

Clothing

Once merchandise has been in stores a month or more, retailers begin dropping prices to circulate new items. Stores begin stocking shelves on Thursday to prepare for the weekend. Weekends are when the most items are sold so the best selection and best prices can be found if you make it to the store before the weekend.

Save additionally by shopping at the end of the season. Clothing stores need to make room for new collections and will mark down clothing significantly to reduce stock. As a new season nears begin looking for deals on clothing. For example, spring is the time to get a good deal on winter clothing.

Best time to buy clothing: Thursday evening and end of season

 

Computers

Computers have become essential items for students which is why most retailers have big back to school sales in August. You can also get a good deal on a computer during the run up to Christmas.

Technology blogs and manufacturer websites should have information about when new computer models will be released. If you have your eye on an older model and a new model is soon to be released, it may be worth the wait in order to buy it at a lower price.

Best time to buy a computer: August and December

 

Mattresses and Box Springs

The best time to buy a mattress and box springs is in May when retailers need to make room for new models. Your chances of getting a great deal at this time are quite good as manufacturers leave retailers enough room to reduce prices.

Best time to buy a mattress: May

Founders of Coupon Sherpa and FreeShipping.org introduce free shipping iPhone app that allows users to access free shipping codes and price discounts for online purchases

Commerce over mobile devices, such as iPhones, is booming in the United States. With this in mind, the founders of Coupon Sherpa and FreeShipping.org have introduced an iPhone application that allows users to find coupon codes for online shopping and make purchases off their iPhone.

The app, which is $1.99 and available at the iPhone App Store, is also ideal to conduct a price comparison and see if you can get a better deal online versus an in-store purchase. The free shipping app features codes for price discounts as well as free shipping deals from participating merchants. Users can search by store or category.

 

“A rapidly growing number of people are making purchases online through their mobile devices, so it makes sense to give them an app where they can get codes for discounts and free shipping offers,” said Luke Knowles, who founded FreeShipping.org (www.freeshipping.org) with his wife, Maisie, and Coupon Sherpa (www.couponsherpa.com) with his Maisie and his brother, Jesse Knowles. “This app is especially convenient when you are in a store and you want to know if the price there is good, or if you can find a better deal online. The only drawback to buying something online is shipping costs, and our app gives you free shipping coupon codes so you can save even more money.”

 

Knowles is building a cluster of businesses centered on frugal living. Launched in December 2007, FreeShipping.org is a one-stop destination for consumers to find online retailers that offer free shipping deals. The site, which now includes more than 1,500 name-brand stores, allows visitors to search by brand or category. Among the major retailers on FreeShipping.org are JCPenney, Macy’s, Target, Bloomingdale's, Kohl’s, Sears, Best Buy, Old Navy and Nordstrom.

 

Knowles debuted Coupon Sherpa, which is also $1.99 and available at the iPhone App Store, in April. Coupon Sherpa allows iPhone and iPod Touch users to access in-store coupons from their mobile device and present that coupon to the cashier at the participating merchant. Finish Line, Zales Jewelers, Coldwater Creek, Gordon’s Jewelers, CompUSA, Jackson-Hewitt and Tiger Direct are among the retailers that offer coupons on that app.

 

The new free shipping app is essentially a mobile version of FreeShipping.org, Knowles says.

 

“We are changing the way people use coupons. We believe this is the future of shopping,” Knowles explained. “The free shipping app is a perfect complement to Coupon Sherpa because the free shipping one is for online shopping and Coupon Sherpa is for in-store purchases.”

 

 

 

Coupon Sherpa allows shoppers to access coupons on their iPhone and iPod Touch

It’s a situation that, as a shopper, you have likely encountered. You are in a store, find a product you want to purchase and recall seeing a coupon for a healthy discount. If only you would have remembered to bring the coupon along. Now, if you are carrying your iPhone or iPod Touch, you can access on your screen if you have downloaded Coupon Sherpa.

Approved by Apple, Coupon Sherpa (www.couponsherpa.com) is $1.99 and available at the iPhone App Store. Finish Line, Zales Jewelers, Coldwater Creek, Gordon’s Jewelers, CompUSA, Jackson-Hewitt and Tiger Direct are among the retailers that offer coupons on the application. Among the coupon categories include men’s and women’s clothing, electronics, restaurants, pet supplies, sporting goods, restaurants and local services.

Coupon Sherpa is user-friendly. When shopping at brick-and-mortar stores, consumers show the cashier the appropriate coupon from the application on their iPhone or iPod Touch. The cashier then types in the bar code, or scans the coupon if that store has an optical scanner.

“We are changing the way people use coupons. We believe this is the future of shopping,” said Luke Knowles, who created Coupon Sherpa with his wife, Maisie Knowles, and his brother, Jesse Knowles. “A friend of ours mentioned that he longed for the day when many in-store coupons would be available on the iPhone. We thought that was a good idea and set out to make it a reality.”

Knowles understands the consumer demand for discounts, and how retailers that provide those discounts can increase their bottom line. In December 2007, Luke and Maisie introduced FreeShipping.org (www.freeshipping.org), a one-stop destination for consumers to find online retailers that offer free shipping deals. Despite the recession, FreeShipping.org continues to grow. There are now more than 1,250 retailers who offer their free shipping deals and coupons on the site.

Knowles expects similar success for Coupon Sherpa, which allows retailers to post an unlimited number of coupons on the application for free. More than 20 million people own an iPhone, and even more have an iPod Touch. Coupon Sherpa gives merchants a forum for customers to save money and shop in their bricks-and-mortar locations.

“In this economy, many people are shopping on the Internet, and they are looking for every opportunity to save money,” Luke Knowles said. “Just as retailers have embraced free shipping offers, they are also interested in making their coupons readily available for iPhone and iPod Touch users.

Coupon Sherpa gives users access to coupons from many retailers that are exclusive to Coupon Sherpa users. The Coupon Sherpa staff also scours the Internet daily to bring customers a variety of printable coupons. This allows users to search coupons by store name or category and present it to the cashier at check out, or e-mail it to themselves and/or friends and family members to print. New coupons are added daily.

“In the future, most if not all coupons will be presented on mobile devices,” Knowles added. “Retailers who become involved now, when the trend is new, can differentiate themselves from their competition.”

The history of coupons starts with Coca-Cola and Grape Nuts and evolves into free shipping deals to lure online consumers

Long before consumers turned to the Internet in increasing numbers to make their purchases online and years before FreeShipping.org debuted as a one-stop destination for retailers to offer free shipping deals to shoppers, entrepreneurs who created two recognizable products introduced Americans to the concept of coupons.

In 1894, druggist Asa Candler bought the formula for Coca-Cola. To spread the word and stimulate sales, the Atlanta businessman used handwritten tickets for a free glass of Coca-Cola to help market his new soft drink. Within a decade Coca-Cola was available in every state, and in two decades one of every nine Americans had received a free Coca-Cola soft drink.

A year later, grocer C.W. Post embraced the concept. His coupon offered consumers a one cent discount on his new breakfast cereal, Grape Nuts.

Like today, when the United States is mired in one of the worst recessions in its history, the Great Depression of the 1930s was a period when coupon clipping was prevalent and necessary. By the 1940s, when supermarket chains started to slowly but surely replace small corner markets, those chains used coupons to attract customers.

Gradually, coupons became commonplace in the United States. In 1957, The Nielson Coupon Clearing House was established devoted entirely to coupon redemption. Half of all American households were clipping coupons by 1965.

The Internet age provided a new forum for discounts. By the mid 1990s, retailers added printable and downloadable coupons that could be downloaded. Then coupon codes online debuted. Most of these online coupons provided for a percentage discount or free shipping on orders.

Today, free shipping is considered a requirement from consumers, and not just a perk. Without free shipping, consumers are less likely to complete their online order since they are repelled by the shipping costs at checkout.

Launched in December 2007, FreeShipping.org is a one-stop destination for consumers to find online retailers that offer free shipping deals. The site allows visitors to search by brand or category.

“Many online shoppers can identify with the experience of finding a great deal and then discovering an expensive shipping charge during checkout,” said Luke Knowles, who founded FreeShipping.org with his wife, Maisie. “Shopping online is more appealing when you know that you won’t have to pay for shipping.”

FreeShipping.org recently introduced My Favorite Coupons, a section that allows visitors to create their own page and select coupons from specific merchants. For example, if you want to receive coupons related to electronics, those coupons will be displayed on your page. In addition, consumers can sign up to have a daily or weekly e-mail sent with requested coupons.

Despite the recession, FreeShipping.org continues to grow. There are now more than 1,250 retailers who offer their free shipping deals and coupons on the site.

“Shoppers are searching for retailers that offer free shipping, and we are a user-friendly site that gives shoppers access to deals offered by lots of big and small retailers,” Knowles said. “Our coupons are accurate and up-to-date, and our site is easy for visitors to navigate.”

The recession has reshaped the priorities of many retailers, Knowles believes. They are searching for effective ways to reach consumers, and they recognize that free shipping is now considered a requirement and not a perk.

“Everyone wants to save money, especially in this economy,” Knowles said. “Every day, we get e-mails from merchants who offer free shipping and want to be on our site. Big and small merchants alike are reaching out to us to promote free shipping offers.”

Effective promotion of free shipping offers is a way for retailers to reach and retain consumers

Despite the recession, FreeShipping.org continues to grow. There are now more than 1,250 retailers who offer their free shipping deals and coupons on the site, which serves as a one-stop destination for consumers to find online retailers that offer free shipping deals.

To help retailers more easily incorporate free shipping into their marketing strategy, Knowles wrote an e-book titled, “The Free Shipping eBook: A Guide to Help Merchants Increase Profits With Free Shipping.” The e-book can be downloaded for no cost at www.freeshipping.org. Written for large and small retailers, Knowles’ book describes how free shipping can increase sales and turn casual shoppers into loyal customers.

The recession has reshaped the priorities of many retailers, Knowles believes. They are searching for effective ways to reach consumers, and they recognize that free shipping is now considered a requirement and not a perk.

“Everyone wants to save money, especially in this economy,” Knowles said. “Every day, we get e-mails from merchants who offer free shipping and want to be on our site. Big and small merchants alike are reaching out to us to promote free shipping offers.”

One section of the e-book details the seven types of free shipping offers available to retailers. After retailers choose the free shipping promotion that best fits their company, they should keep consumers informed of shipping savings with strategic advertising, Knowles says.

Here are seven ways for retailers to promote their free shipping offers:

1. Emphasize Urgency - By emphasizing the urgency of the offer, retailers give shoppers a reason to buy right now.
2. Highlight Exclusivity – Retailers should tell customers why they are fortunate to have found the offer.
3. Make Your Offer Clear - One of the biggest mistakes merchants make is hiding their free shipping offers in places most shoppers will never see them. Every visitor should know about the retailers’ great free shipping offer.
4. Give Your Offer a Unique Name - With six out of 10 merchants offering free shipping, retailers need to generate creative ways to stand out. Come up with a unique name for a free shipping offer that is memorable. “EZ Delivery Service” from BabyAge.com is a great example.
5. Be Creative - Sierra Trading Post has one of the most creative uses of free shipping. Every Sierra Trading Post catalog has a riddle hidden in it. Readers are encouraged to read through the whole catalog to find the riddle. During checkout, shoppers are given the opportunity to answer the riddle to get free shipping on their order. This encourages shoppers to read through the whole catalog to find the riddle, which puts more products in front of very loyal customers. This creative approach to free shipping has had a social or viral element to it. Since the riddles are very difficult, Sierra Trading Post customers spend much time discussing the riddles in forums and on blogs.
6. Experiment - It may be that one type of free shipping offer has better results than others. Retailers should experiment with different offers until they find the offer that is right for their customers and their profits. The same offer that works well for other merchants in the same industry might not be the right free shipping offer for a particular retailer.
7. E-Mail Subscriptions - Giving customers free shipping on their order is a great way to increase newsletter subscribers. Being able to reach loyal customers by e-mail when you want can help increase sales. Merchants should determine whether offering free shipping on an order is worth the potential revenue the subscriber will generate. Many loyal customers may forward the emails they receive to their friends. This tactic can turn visitors or one-time buyers into loyal customers because the merchant can reach the subscriber with news, updates, and promotions at any time.

Retailers can attract customers by paying attention to the Seven Types of Free Shipping

A rapidly growing number of people are turning to the Internet for shopping, and turning away from bricks-and-mortar stores, according to Luke Knowles, who is founder of FreeShipping.org. Supporting Knowles’ point is the fact that online shopping increased two percent in January 2009 compared to January 2008. Knowles attributes the trend to better prices and a more extensive inventory online.

To help retailers more easily incorporate free shipping into their marketing strategy, Knowles wrote an e-book titled, “The Free Shipping eBook: A Guide to Help Merchants Increase Profits With Free Shipping.” The e-book can be downloaded for no cost at www.freeshipping.org. Written for large and small retailers, Knowles’ book describes how free shipping can increase sales and turn casual shoppers into loyal customers.  

Knowles thoroughly understands the nuts and bolts of free shipping. With his wife, Maisie Knowles, he founded FreeShipping.org in December 2007. Even in the midst of a recession, the site that serves as a one-stop destination for consumers to find online retailers that offer free shipping deals grows every month. Presently, there are more than 1,267 retailers big and small who offer free shipping deals and discount coupons on FreeShipping.org.

“There are many different ways to offer free shipping,” Knowles explained. “Retailers might try one and not like it, but it is ideal to experiment. Since shoppers are interested in buying from retailers that offer free shipping, it will only increase your sales.”

In the e-book, Knowles writes about the seven types of free shipping offers.

1. Free Shipping on Everything (or Free Shipping Without

Conditions) - Merchants who have a high enough profit margin can offer free shipping with every order. Many shoe and jewelry merchants offer complimentary shipping on everything for this very reason. Lalit Dhadphale of HealthWarehouse.com began offering free shipping on all orders in August 2006, a first in the online healthcare segment. Lalit says, “We opted to go free shipping across the board with no coupons or minimums for everyone and the results have exceeded our expectations (and our customers as well).”

Major advantage: This is the most enticing deal for shoppers and can generate increased sales.

2. Free Shipping with a Minimum Order - The most common free shipping offer is free shipping with a minimum purchase price.

Major advantage 1: This type of free shipping offer encourages shoppers to spend more to qualify for the discount.

Major advantage 2: As fuel costs increase, merchants can raise the spending limit needed to qualify for free shipping.

Tip: If the average customer spends $90 per order, try offering free shipping on purchases over $100. This will encourage shoppers to buy more to get free shipping.

3. Free Shipping on Select Items - Many merchants selling small and large items promote free shipping only on select products (as it is not cost effective to offer free shipping for oversized items).

Major advantage: This type of free shipping offer can be a great way to quickly increase sales on overstock items or last year's model.

4. Free Shipping Site-to-Store - Some large merchants like Wal-Mart and Sears offer free shipping when you pickup the items at a physical store location. At first glance the site-to-store savings may not be as apparent to the customer without front door delivery. However, as Walmart.com offers a much larger selection than a local Wal-Mart store, it is still a benefit to the shopper.

Major advantage: Free shipping site-to-store can be a great way to get customers to enter your physical location.

5. Free Shipping by Delivery Location - We estimate that more than half of all free shipping offers are for deliveries within the continental United States.

Tip: Don't forget about Alaska, Hawaii, and U.S. territories! Many merchants who provide complimentary delivery only offer it to the lower 48 states. By offering free shipping to locations outside of the contiguous U.S. You can create an advantage over competitors in those markets.

6. Free Shipping by Membership - Membership has its rewards. Many online retailers offer free shipping to those who have joined a special members-only club. It is customary to charge an annual fee for membership. A prime example of this is the Amazon Prime membership which gives members free 2-day shipping on their orders among other rewards. For $79 per year members join Amazon Prime. Sears has a similar offer called ShipVantage.

Major advantage: Free shipping with a Membership can help to build customer loyalty. Loyalty programs are a great way to lock in future purchases.

7. Flat Rate Shipping - Flat rate shipping differs slightly from free shipping. Flat rate

shipping is when a retailer offers a low shipping rate regardless of purchase price, quantity, or weight. The Gap and Old Navy both offer flat rate shipping of $7 for any size order and Kohl’s regularly offers 99 cent shipping per item.

Major advantage: Customers shop with confidence knowing that delivery costs will not increase with a larger shopping cart. This helps to reduce abandoned shopping carts.

“With at least 7 different types of free shipping offers available, merchants should be able to craft an offer that is alluring to shoppers and profitable for the company,” Knowles said. “A flat rate shipping offer is also attractive to shoppers because it allows them to know what the shipping charges will be up front. This helps to reduce abandoned shopping carts.”