Here's the Deal with Free Shipping
One of my goals when opening this shop was to be as transparent as I could about how to run a small business. side note: I’m actually considered a micro-business
It’s no secret the the pandemic has changed the retail landscape in ways that have sent a ripple effect across all businesses whether corporate, small or micro. The wave of online shopping is at its peak, which has really made things interesting for e-commerce.
There’s an element that this has effected, which has directly impacted small/micro businesses to the point of exasperation. That element is shipping.
I get it! We all want a good deal and free shipping on an online order is a small thing that makes a big difference when purchasing from a site! Corporate retail can easily offer this because (let’s list the reasons):
Higher volume of orders = better bulk shipping
Margins Margins Margins. While you think you’re getting a good deal it’s all built into the price.
They have way more money behind them than your average small/ micro business.
I’ve been asked, “Courtney, why don’t you offer free shipping on your website? I bet you’d have more sales!”. That could very well be true, but I’ll tell you why I don’t.
I already use a flat rate shipping option cheaper than the average shipping cost. This means I eat the cost on 90% of my online orders, which eats away at my margins. These are margins that I already keep fair.
Free shipping for international orders would mean I would actually lose all my margin profit.
I’m a MICRO BUSINESS. What’s a micro business? That just means I operate on a small scale with a different capital. The maker’s and vendors I work with make small batch, slow fashion pieces, so that their items will not be mass produced and clog up our landfills. When I sell vintage pieces once they sell they’re gone and will never be restocked. When I sell a small batch item that means when it sells it’s either gone for good or will take weeks to restock. Since I don’t restock and refill like a corporate retail business the volume of orders will inherently go down.
Whew! That was a lot. Basically if I want to keep a unique, community based business I need to be aware of how to allocate where my money goes. I decided that if I offered free shipping on all orders and kept eating the cost, I wouldn’t have the capital to keep investing in the amazing products I carry or restock all of my amazing vintage.
I have to say that I DO offer free shipping on all orders over $100 because then it makes it easier for me to eat the shipping cost. It’s a catch 22 because I’d LOVE to give you all that extra incentive, but it would be at the expense of making sure I have a sustainable business.
That’s a weight that a lot of small/ micro business owners have on their backs. We feel things a lot more that corporate retail because we directly interact with YOU! I am a one-woman show and I know that any little bit of money my customers can save is so important especially after the past couple of years. I’ve heard your stories, struggles and triumphs, so I GET IT!
I’m right there with you.
Whenever I can find a moment where the stars align and I can pass savings onto you I will do it with bells on! That’s one of the things I love about being a micro business! There’s no middle person or third party entity. It’s just me and you :)
What are your thoughts? Let me know below!
Love you all!
Courtney
