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Ecommerce Strategies for Free Shipping

Published by Charles Brodeur

Where “free shipping” resides on a P&L can significantly impact how frequently retailers offer it. While the majority of retailers identify any shipping-related costs or expenses within their transportation line items, some retailers allocate them under marketing expenses because free shipping is such an effective driver of incremental sales. Those retailers that consider free shipping a marketing expense also tend to offer free shipping more frequently and generally did not “rate shop” (i.e., downgrade shipping service levels to save money).
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