What is the number one concern that online retailers have for the way their sales prospects are affected every single day? It isn't a competitor; it isn't even the economy. It is what shipping happens to cost. It's just that 50% of all people who arrive at the final checkout stage in the buying process abandon their purchase when they take one look at what shipping is likely to cost them. Retailers lose half of all their sales to prohibitive shipping costs. That's why there is so many retailers, Amazon, Toys "R" Us, even specialty retailers of clothing and shoes, offer free shipping. They even come together to create shipping clubs where you just need to pay an annual fee to get free shipping for anything you buy for a full year. Typically, these cost anything from between set $25 and $75 a year. Let's say that you are interested in buying an inexpensive pair of shoes; free shipping you would really appreciate, because you really wouldn't want to go over-budget with you shoes. As with anything that retail businesses offer though, there is no such thing as a great deal. There are only appearances of that.
Shipping clubs today are all the rage. How exactly do these businesses make the deal work out in their favor? Remember how we just said that that 50% of all the potential checkouts at online stores get canceled because customers balk at the shipping costs? This means that with free shipping, people could buy about twice as much as they do now. If you are like Carrie in Sex and the City and you love your shoes, the ability to buy shoes, free shipping included, is really going to be a temptation.You are going to believe that since you are saving so much on the shipping, the shopping shouldn't be something you need to feel that guilty about. Stores offer free shipping because that way, they can double their sales.
Before you sign up for free shipping, make sure that you ask yourself how much you actually end up saving. Shipping clubs don't make sense unless you find that you shop quite a lot at the stores that are on the club's network. You need to first ask yourself if you are comfortable with being limited to a specific set of stores and cannot be allowed to go beyond. Most online stores have free shipping orders for purchases above a set level anyway. Shipping clubs only makes sense if you find that you often buy stuff that is too small to qualify for the store's free shipping policies. You should probably go back to your history with a store to see what kind of purchases you tend to make. Amazon's Prime Membership costs $79 for instance. You would need to make 30 or 40 small purchases every year with shipping charges that cost two dollars or three dollars per purchase to break even. With shoes, free shipping is almost always a given anyway - since shoes tend to generally cost enough to qualify for free shipping on their own.
But sometimes, signing up for such a membership gives you deep discounts off several kinds of purchases. In that case, it's really might be worth it. It really depends on the store's policies.
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