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The surge in online stores and an increasingly more budget minded consumer have resulted in a much more competitive market. Consumers are no longer willing to pay top dollar for a product. They are now shopping around to find the best deals. Businesses have had to make a number of marketing changes in order to attract customers. One such change is implementing a free shipping policy.

A recent survey by PayPal and comScore revealed that 43% of people surveyed didn’t pay for items in their shopping carts because shipping charges were too high. As well, according to a Harris Interactive (2008) survey, 60% of those surveyed claim free shipping is a reason they are more likely to shop online. Offering shipping for free can drastically increase store sales. In attempt to lower their shipping costs, many retailers will store their products in a number of warehouses in various locations across the country and ship their orders directly to the customers. Other companies are negotiating shipping prices with air freight companies in an effort to obtain better rates.

There are a number of ways that businesses use free delivery as an effective sales and marketing tool. A company may offer shipping free of charge for orders where the total purchase price is above a specified amount. Another fee shipping option companies will employ is offering the customer a shipping rebate in the form of money, a discount on their next order, or a coupon or gift certificate. They can also offer free shipping on specified items. Some retailers will even offer shipping for free on all items. The goal is to increase sales which will offset delivery cost losses. Other companies will provide free delivery to their members or as part of a rewards program. Sending electronic coupons to a customers email providing shipping deals on a customers next order is another effective method of increasing sales. As well, businesses may offer free delivery throughout the country including directly to ones door step.

Providing free delivery is an effective way to obtain repeat customers. Most online retailers and a growing number of traditional retailers that offer free shipping are offering it as free ground shipping. However, there now appears to be a new trend of offering better free delivery service. Some companies are offering free 2 day shipping and free overnight shipping.

The benefits of providing shipping free of charge include a reduction in the number of abandoned shopping carts, assists in the marketing a new product, improves customer loyalty, encourages shoppers to make a purchase, and helps sell excess products.

Internet shopping is one of the fastest growing retail sectors. Online shopping is one retail area that has not been affected by a slow economy and increase in gas prices. Consumers are drawn to shipping offers because they feel they are getting a good deal compared to driving to a local store. Studies have shown that customers are more likely make a purchase if free shipping is offered. More consumers are not only demanding free shipping with their orders, they are expecting it. Offering free shipping in a variety of forms is an effective marketing and sales technique that most businesses are now using. In order to compete for your business, retailers that have never offered free shipping will have to start offering it. It appears that the free shipping trend is here to stay.

When you shop online, you can get some great deals, because the vastness of the World Wide Web increases competition among retailers. If you do not like the price at one retailer, you simply click over to another. Soon you will find the item you need or want at a truly bargain price.

When you find the perfect item at the best possible price, you add it to your cart, pull out your credit card, and start to make your purchase, pleased with the low price. Suddenly, you see that shipping charge. Little did you know, the retailer you were shopping is not located in your country. You are forced to pay excessively high international shipping charges. Suddenly your “great bargain” is not so great.

The Cost of International Shipping

International shipping costs more because it costs the retailer more to send you the item. Any time an item crosses borders, the shipping rates get inflated. Even if you are shipping from the United States to Canada, which is not really a large distance, you will pay more. Always look at the shipping charge before you pay.

Inflated Charges

Some retailers will charge inflated shipping charges, simply because they know you will expect to pay more for international shipping. Research the shipping cost on your own before you pay. While you can expect to pay some sort of handling fee to cover time and mailing supplies, if the cost for international shipping is way higher than it appears to be if you were to ship the item, consider looking for a better deal at another retailer.

Not All Retailers Offer It

Online retailers target specific countries. Australia, the U.K, the U.S., and Canada are all targeted by online retailers. If you are shopping outside of these targeted markets, you may find that some retailers will not ship to your location. American retailers are particularly guilty of this, and many do not offer any international shipping at all, even to these other major markets.

Before you begin shopping on a particular website, check to see whether or not they offer international shipping. Most online retailers will have a page outlining their shipping policies. If they do not appear to offer international shipping, ask before you start trying to make a purchase.

Shipping Is Non-Refundable

On most websites, shipping is non-refundable. If you are not happy with your item and paid a lot of money to have it shipped internationally, you might be able to get your money back for the purchase price, but you will have lost the money you spent on shipping. Make sure you are confident on the quality of the item before you buy.

Make Sure a Deal Is Still a Deal

If you know you are going to have to pay international rates for shipping on the item you are purchasing, make sure that you are still getting a good deal. Sometimes the cost of shipping will eat up any potential savings you might be receiving on the item’s purchase price. If the shipping rates are too high, consider paying a little more for the purchase price at a retailer with local shipping rates. You might end up saving more money. Remember, when shopping online, whether shopping locally or internationally, the shipping rate must be figured into the purchase price as you make your decision about whether or not to buy an item.

With so many retailers are taking advantage of the internet to sell their good and services, competition for customers has drastically increased. Because most traditional stores are adding an online store site to their business, competition has become even more significant. To stay ahead of the competition, businesses have had to come up with innovative ways to attract and keep their customers. In a recent .comScore study, “72% of consumers said that if an e-commerce site eliminated free shipping, they would use another e-commerce site that did offer free shipping.” The LA Times also reported that this year, “nearly 80% of consumers said they were more likely to shop online with a retailer that offers free shipping, compared with 60% who said that last year.”

Free shipping provides a number of economical benefits that include:

– Shoppers are encouraged to buy products through an online retailer instead of visiting traditional shopping stores – Both online and traditional shoppers have grown to expect free shipping. – Decreases the number of abandoned shopping carts. – Consumers are now looking for ways to lower their gas bills. Not paying for delivery counters rising gas prices. – If retailers have a new product, free shipping will help them market it. – Encourages repeat customers and builds customer loyalty. – Attracts and keeps new customers. – Helps retailers sell overstocked items and products that are not very popular – Persuades more shoppers to make purchases than any other business promotional method.

There are a number of methods retailers can use to make the most out of their shipping service. The following shipping options are designed to accommodate the needs of a variety of businesses:

1. Free Shipping on Every Item Without any Conditions: Free shipping on all items is a useful method for retailers who make high sales. This method is very popular among shoppers.

2. Free Shipping on Orders over a Specified Amount: This method is helpful if retailers want to encourage customers to buy more products. For instance, a retailer may offer free shipping when the order totals $25.00 or more.

3. Free Shipping with Store Membership: Including shipping with a membership is a great way to create repeat customers. Memberships can be free or there may be an annual membership fee.

4. Free Shipping on Certain Products: Many retailers offer special shipping promotions on products such as large items that can include televisions, refrigerators, washer and dryer-etc. It is a cost efficient way of selling unique products.

5. Free Shipping with Coupon: Providing shipping with a coupon is a great way to increase sales. You can place coupons online, in newspapers, and in flyers. It is also a great advertising tool.

6. Free Site-to-Store Shipping: A store can cover delivery costs for products that have to be shipped from a main warehouse to the store. This will encourage the customer to come into the store and shop around.

7. Free Shipping Everywhere: Many businesses place restrictions on where they will provide free delivery. For instance, some businesses may not provide free cross border shipping to Hawaii. Making delivery available within the entire country will help boost sales and encourage repeat customers.

8. Free Shipping to your Doorstep: Customers love the convenience of ordering a product by phone or online and have the product arrive at their home a few days later. Covering delivery costs to a customers home is a great way to acquire repeat customers.

Free shipping provides customers with an incentive to shop. By implementing a free shipping program in your online and traditional store, you will create happy, satisfied, and loyal customers.

There is merchandise that is easily packaged and sent (via postal mail or other delivery services) and then there is bulkier merchandise that is more difficult to transport. Furniture, for example, is too large and bulky to expect that the post office would be able to handle such shipments. Even delivery companies such as UPS and Federal Express have certain divisions that can handle shipments of large items such as furniture. The problem with using such services on a regular basis is that it can prove to be quite costly.

If you are in the furniture business, you should consider using one or more freight companies to deliver your goods. Freight companies are set up to handle heavy and/or voluminous loads, and can prove to be the most cost-effective method of delivery for furniture, automobiles, machinery and other large-load shipments. Below is an outline of some of the major advantages to having freight companies deliver furniture for commercial businesses.

Wider Selling Area If your commercial furniture business is limited to selling in the area where the businesss own delivery trucks can reasonably be expected to deliver to, you will be losing out on thousands of dollars of missed sales. On the other hand, if your business has the capacity to deliver anywhere nationally, you ll have the capacity to market your goods in a much larger area and thus multiply your sales. A good freight company will also allow you to expand your internationally.

Ongoing Relationships If your company is just starting out with freight shipping, it may take a while to find a good freight company with which to do business. There are a multitude of freight companies who will be eager to earn your business. It is important to deal only with reputable companies that maintain a high standard of customer service. The advantage to establishing a business relationship with one or more freight companies is that you can negotiate discounts for using the freight service on an ongoing basis.

Safety and Security Another advantage to using freight companies to transport commercial furniture is that you are leaving it to the experts. Freight companies specialize in transporting cargo and know what they are doing. A good freight company can ensure that any import/export paperwork required is completed and help guide you through the process if it is new to you. A reputable company will also offer either a guarantee or make insurance available to secure the value of your goods should they be damaged while in transit.

If you are considering using freight services in order to expand the area where you are able to sell your furniture in a cost-effective way, make sure you do your homework. Research different freight companies online first and try to find reviews from other businesses that have used them. When you narrow it down to a few companies that youre considering, interview the companies thoroughly and compare rates and contracts. Dont forget to ask about discounts!

Whether you run an import or export business, or even if you just have a substantial shipment to send overseas, you may be considering using an air freight company. An air freight company simply refers to an organization dedicated to transporting goods (cargo) by aircraft. While the cost of shipping goods via air is generally more expensive than other methods, shipping times are almost always shorter. There is a huge market for cargo transport by air, not only for commercial purposes, but for personal ones as well. Before you start comparing air freight companies and shopping around for a cargo airline that will suit your needs, you must understand how these companies expect to be paid.

One Rate Air freight is typically charged at the same rate no matter what class of merchandise or other goods are included in the shipment. When rates are quoted for air cargo shipments, they are typically quoted on an airport to airport basis. The three most common ways that air freight companies break down their charges are as follows: Weight Volume

Chargeable Weight In the cargo shipment industry, chargeable weight refers to the actual gross weight or actual volume weight of any given shipment. The cost to send goods internationally by air freight will be based on either the gross weight or volume weight. Which measurement is used to determine the cost depends on which is better. Because of this, for exporters of dense goods, such as food products, toiletries, bottled drinks, clothing, etcetera, the shipments gross weight is of utmost importance. For shippers who are exporting bulk items such as home furnishings or building materials, the volume weight of the cargo will be more relevant to the final cost.

How is Chargeable Weight Calculated?

Gross Weight Gross weight is the easiest to determine because it is straightforward. The actual weight as indicated on the cargo scale represents the gross weight that will be the chargeable weight provided the gross weight is greater than the volume weight.

Volume Weight To calculate the volume weight, a bit of simple geometry is required. The dimensions of the shipment must be measured ” specifically, the length, the width and the height. The measurements should be taken in either inches or centimeters depending on where the shipment is originating. Then, the following formula is applied:

If measurements are taken in inches: Length x Width x Height / 165 = Volume Weight (in pounds)

If measurements are taken in centimeters: Length x Width x Height / 6,000 = Volume Weight (in kilograms)

For example, if you shipment is 60 inches long by 40 inches wide and 70 inches tall, the equation would be: 60 x 40 x 70 = (168,000) / 165 = 1018 lbs

Say the volume weight for this shipment is 1018 pounds. If the gross weight is more than 1018 pounds, then the freight rate will be applied to the gross weight. If the gross weight is less than 1018 pounds, then the rate will be applied to the volume weight.