Comments on: Retail Marketing Strategy Should Rely More on Personalization, Less on Free Shipping http://istobe.com/blog/2008/10/20/retail-marketing-strategy-should-rely-more-on-personalization-less-on-free-shipping/ Fri, 18 May 2012 05:52:21 +0000 http://wordpress.org/?v=2.6 By: John Lindberg http://istobe.com/blog/2008/10/20/retail-marketing-strategy-should-rely-more-on-personalization-less-on-free-shipping/#comment-291 John Lindberg Sun, 02 Nov 2008 15:24:17 +0000 http://www.igniteanalytics.com/blog/?p=426#comment-291 From my point of view as a fulfillment services provider, I see the full range of s&h pricing strategy both as a marketing tool and as a profit center. One insight that I can offer is the idea of calculating REVENUE per pound and comparing this to ship COST per pound taking into account the fact that ship cost per pound declines as package weight increases even though revenue per pound remains constant. For example, a 5 pound package delivered UPS ground residential to zone 5 costs $2.73 per pound, but for a 20 pound package to the same address, the cost drops to $.83 per pound yet the product revenue per pound doesn't change. This presents an opportunity to webstore merchants to either increase sales or the bottom line by using shipping deals to increase the average revenue per order provided they think in terms of extra revenue vs declining extra expense. John Lindberg - President EFULFILLMENT SERVICE INC www.efulfillmentservice.com From my point of view as a fulfillment services provider, I see the full range of s&h pricing strategy both as a marketing tool and as a profit center.

One insight that I can offer is the idea of calculating REVENUE per pound and comparing this to ship COST per pound taking into account the fact that ship cost per pound declines as package weight increases even though revenue per pound remains constant.

For example, a 5 pound package delivered UPS ground residential to zone 5 costs $2.73 per pound, but for a 20 pound package to the same address, the cost drops to $.83 per pound yet the product revenue per pound doesn’t change.

This presents an opportunity to webstore merchants to either increase sales or the bottom line by using shipping deals to increase the average revenue per order provided they think in terms of extra revenue vs declining extra expense.

John Lindberg - President
EFULFILLMENT SERVICE INC

http://www.efulfillmentservice.com

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