Are You Planning a FREE SHIPPING Promotion?
Many online businesses contemplate offering FREE shipping to their online customers either as a special time-limited promotion or even permanently. Here are some of the Pros and Cons to be aware of.
• Easy for online shoppers
• Final cost is known in advance
• Reduced shopping cart abandonment
• Potential for increased sales
• Happier customers
• Free shipping may reduce margins
• Shipping to remote locations can be expensive
• Seller must closely monitor freight costs
Offering free shipping for online orders is an extremely popular strategy that is gaining greater momentum in the world of e-commerce. Free shipping does not mean an online store loses revenue; it simply means that the online shopper is not presented with a separate shipping charge for their purchase. When providing free shipping, average shipping costs are typically built into the price of the product so that the customer does not have to contend with unexpected shipping costs and therefore does not have the opportunity to re-evaluate and possibly cancel the purchase prior to completion.
When shipping parcels in Canada, there are some destinations that cost much more to ship to than other destinations. These areas typically require some form of extended and expensive service such as air freight in order to effect delivery.
To help you better plan for a FREE SHIPPING promotion, Kitpak Fulfillment has identified some of the Canada Post destinations or Forward Sortation Areas (FSA’s) that can be significantly more expensive to reach when shipping by Canada Post.
When shipping to the FSA’s in the list below, you may want to consider adding a surcharge to cover the extra shipping costs or you may simply choose to exclude these FSA’s from the FREE SHIPPING promotion.
FSA’s are identified by the first 3 digits in the Postal Code.
R0B R0C A0K A0P G0G J0M P0L P0T P0V S0J T0H T0P V0J V0N V0P V0R V0T V0V X0A X0B X0C X0E Y0B
Contact Kitpak Fulfillment today to learn more about how we can help you improve your order fulfillment process and save you money.
1615 Inkster Blvd.
Winnipeg, Manitoba R2X 1R2