Jump to content

Offering Free Shipping on Website Orders????


DaisyChain

Recommended Posts

I see a lot of etailers that have free shipping sales and wonder how they can afford to do this...I can see it with a minimum purchase but a lot of them do it without a minimum. What happens with all the $10-$20 orders? If I paid shipping on a $10 order of tarts, it would actually be spending money for them to take my tarts in most cases. lol

Can you write off the cost of this free shipping on your taxes at the end of the year or something?

Just trying to figure this one out...

Link to comment
Share on other sites

DaisyChain, I'm sure they'e be losing money on the small orders. But perhaps the larger number of orders they get due to this sale would more than compensate for it? As for the accounting side... the total the customer paid you is to be recorded as income, while the amounts you spent for their order (ingredients, postage, etc) is recorded as an expenditure. This is true no matter whether you're having a free shipping sale or not. So yes, you'd be able to deduct the shipping.

Link to comment
Share on other sites

The only thing I do free shipping/mailing are tarts. Even lowered my cost slightly and then boom USPS went up. I will keep the cost down now but will have to go back up. I got a $20.00 order this week for tarts.Was thinking I will not make much at all with USPS flat rate so I just happened to have a small box I saved( a order I placed) with someone. I used that box and saved over $3.00 in shipping/mailing. Finally managed to make some money.

Cost goes up first of year.

LynnS

Link to comment
Share on other sites

Hi DaisyChain,

I totally understand where you're coming from...I thought the same way when I started my business many many years ago. The bulk of my business is wholesale, so when I do receive retail orders from my website my customers typically place large orders. It's very seldom that I sell tarts or anything like that.

Although, my prices remain competitive to other's, my price point still allows for a cushion in terms of profit and offering free shipping. The idea is to get your customer to spend more by offering them something free, but it has to make good business sense.

HTH,

Jameel

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...