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Free Shipping: Customer Centric or Lost Profit

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There is a great business article on Free Shipping at shop.org. It’s something we’ve been grappling with over the last year. Everyone knows there is a high cost of shipping since they are paying at the pump higher prices than ever. Our lowest cost to ship is now about $15, regardless of what we charge customers.

We recently changed our return policy. But think about the impact. We pay to get product from the manufacturer warehouse to us. Then we ship to the customer. If something comes back, we pay to ship it a second time. That’s up to $45 in shipping costs on a consumer order, depending on the initial volume/cost from the mfr warehouse. if the product is defective, we also pay to return the product to the warehouse from our corporate offices, since it may not be OK for individuals to ship anything direct to a manufacturer, and the shipping expenses on a minimum $200 now rise up to $60! If the customer orders the minimum $200, about 25% goes just to shipping.

What do you think? What is the most important factor for you to purchase at CEOgolfshop.com vs another online store?
– Free shipping promotions.
– Product selections.
– Great customer service.
– Whoever has the lowest price, including shipping.
– Whoever has the lowest price, I don’t look at shipping unless it seems unreasonable.