An Interesting Take on “Free” Shipping from Vermont Teddy Bear

Free shipping is certainly a hot button issue for many online shoppers and the retailers that serve them. With that in mind, let’s take a look at the strategy of Vermont Teddy as to shipping fees.
As reported by Tim Parry for Multichannel Merchant: “Speaking at eTail East in Philadelphia, Victor Castro, director of E-commerce for Vermont Teddy Bear, said his company offers coupon codes for free shipping year round, but consumers hardly use them. ‘As a promotion, free shipping works,’ Castro said, but in its rush seasons – Valentine’s Day, Mother’s Day, and Christmas – Castro said last-minute customers will pay a premium for shipping. ‘Our customers are late to buy, so we make them pay big,’ Castro said. ‘We’re saving them, and we’re saving their relationship. Not only can we get away with charging a premium [for shipping], our customer is willing to pay for it.’ Not all Vermont Teddy Bear’s customers are willing to pay a premium for shipping. Looking at his company’s analytics, Castro said it’s clear that female buyers will wait for free shipping offers before they make a purchase. And they also do not wait until the last second to purchase a gift from Vermont Teddy Bear.”
Click the image to read Parry’s full story.

 

 

This entry was posted in Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer and tagged , , , , , , , , , , . Bookmark the permalink.

One Response to An Interesting Take on “Free” Shipping from Vermont Teddy Bear

  1. Pingback: What Do Consumers Prefer: Free or Fast Shipping? | Retailing: From A to Z by Joel Evans

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