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[DEBATE] - Which is better $15.00 + $5.00 shipping or $20 + Free shipping

Discussion in 'BlackHat Lounge' started by CosmicSoundz, Jan 24, 2013.

  1. CosmicSoundz

    CosmicSoundz BANNED BANNED

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    Hey guys. So there seems to be a little FB drama / debate on the above statement. Actually the argument stems from the above.

    Personally I think that $20 + free shipping or rather ($19.99) + free shipping is the better way to go. Although I suggest doing a A/B testing. Why? because each market is different. People who are into buying business cards think differently than people who buy boxing gloves. Also people who buy on eBay think differently than people who buy in etsy or some eCommerce site.

    I have some eBay power seller trying to tell me that my A/B testing idea is stupid because its a proven fact that 90% of people will go for the FREE shipping option over the low price + shipping option.

    My stance is that there can be 50000000 case studies but you wont know for sure until you test it on your own. That is UNLESS the case study matches up everything that you are doing.

    So just because his case study on eBay says one thing, doesn't mean my eCommerce store will have the same results.

    What do you guys think?
     
  2. HighRiskJohn

    HighRiskJohn Junior Member

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    It depends on the product and whats considered "customary" in your market. If your competitors are all charging $15 + s&h and you're charging $20 including shipping, you're going to be considered overpriced. When I build out ecom sites, I always look at who my main competition is going to be and see whats customary. Most people have accepted a shipping charge and even though your total price is the same after shipping, it's sometimes better to have a lower price and charge shipping. Again, it's going to depend on your market and product offering.
     
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  3. cricket1

    cricket1 Senior Member

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    Well, free is not always better, for example, sometimes free shipping can take a while to arrive compared to an express delivery. Despite that I am sure ordinary people would choose the free option given the price is not higher than competitor's.
     
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    Last edited: Jan 24, 2013
  4. CosmicSoundz

    CosmicSoundz BANNED BANNED

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    The main thing to focus on is the A/B testing.

    I feel thats the ONLY way to know for sure about YOUR market and product.

    He claims my A/B testing is a terrible idea.
     
  5. pathart

    pathart Senior Member

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    I always do a A/B test as you mentioned, depending on what software you use for your site (if any at all) it can be fairly easy to do and keep track of conversions.
     
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  6. Hootz

    Hootz Regular Member

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    A/B testing is a great idea. From a consumer standpoint, in the given situation where total comes to the same I first check if one is First Class and if the other is Second Class, if that's the same I'd go with the higher rep / better feedback.
     
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  7. DigitalCity

    DigitalCity Jr. VIP Jr. VIP Premium Member

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    19.99 + Free Shipping...(FREE) Will always work better (in most not all categories)...
    Been tested and tested all over the world and free ship always sells best...

    Always add in (odd) pricing effect, it works best then whole numbers in the buyers eyes.
    a full 20, or 19.99 - 19.99 always looks better...or 19.98 etc...


    IF you have HEAVY competition and they are all doing 15 with free ship
    or 18 plus free ship. Then find a way to add something they dont offer.

    LIKE... 19.98+ Free Shipping
    (includes 12 months full warranty)
    OR
    (Sent and shipped from USA) Arrives quicker...
    OR
    (Free Gift with every purchase) - Offer them a free ebook after they receive and leave a good FB for you..

    Gotta be creative to keep this profit margins UP my man... good luck...
     
    Last edited: Jan 24, 2013
  8. CosmicSoundz

    CosmicSoundz BANNED BANNED

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    It really depends on the market.

    Here is why.

    In the market that I am in people will email me saying.. Hey so and so has it for $50 and your price is $60. So I have to explain to them that you have to pay $15 for shipping and wait longer with the other guy because he is across country, while with mine its free shipping and I am located in the same town as you.. Its just the market that I am in. People are stupid and only see what they want to see and hear.

    This is why I suggest A/B testing because you REALLY dont know until you test it.