Comments on: Ebiz 1 Strategy – Up-selling vs Free Shipping http://www.livelearninvest.com/ebiz-1-strategy-up-selling-vs-free-shipping/ Living life to its fullest by generating passive income through investments Wed, 28 Jul 2010 02:48:08 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: John Lindberg http://www.livelearninvest.com/ebiz-1-strategy-up-selling-vs-free-shipping/comment-page-1/#comment-54703 John Lindberg Sun, 02 Nov 2008 14:55:55 +0000 http://www.livelearninvest.com/blog/ebiz-1-strategy-up-selling-vs-free-shipping/#comment-54703 Here is another point of view that might be helpful...the cost per pound for shipping drops drastically as the package weight increases. For example, for UPS ground residential to a zone 5 address the cost per pound for a 5 pound package is $2.73, but the cost per pound drops to $.83 for a 20 pound package. If you calculate your REVENUE per pound which does not change and compare this to the declining cost per pound for various upsell and cross sell combinations, you may find new profit opportunities. The key to everything is to compare your revenue per pound to your ship cost per pound. Free shipping on sales of coal is quite different than for diamonds. John Lindberg - President EFULFILLMENT SERVICE INC www.efulfillmentservice.com Here is another point of view that might be helpful…the cost per pound for shipping drops drastically as the package weight increases.

For example, for UPS ground residential to a zone 5 address the cost per pound for a 5 pound package is $2.73, but the cost per pound drops to $.83 for a 20 pound package.

If you calculate your REVENUE per pound which does not change and compare this to the declining cost per pound for various upsell and cross sell combinations, you may find new profit opportunities.

The key to everything is to compare your revenue per pound to your ship cost per pound. Free shipping on sales of coal is quite different than for diamonds.

John Lindberg – President
EFULFILLMENT SERVICE INC

http://www.efulfillmentservice.com

]]> By: Monevator http://www.livelearninvest.com/ebiz-1-strategy-up-selling-vs-free-shipping/comment-page-1/#comment-24159 Monevator Wed, 13 Feb 2008 13:05:27 +0000 http://www.livelearninvest.com/blog/ebiz-1-strategy-up-selling-vs-free-shipping/#comment-24159 Interesting article. There may be reasons to upsell, even if you do make less profit. For instance, if the customer thinks of you more as a 'destination' where they can get everything, or if the products you sell generate follow up sales (for instance, refills or spares). It is worth remembering that traditional bricks and mortar stores can shift more goods at a loss partly to damage the competition. If a grocery store sells you free oranges when you buy lemons, then you're not going to buy the lemons next door, for instance. Anyway, just a few thoughts - good luck Interesting article.

There may be reasons to upsell, even if you do make less profit. For instance, if the customer thinks of you more as a ‘destination’ where they can get everything, or if the products you sell generate follow up sales (for instance, refills or spares).

It is worth remembering that traditional bricks and mortar stores can shift more goods at a loss partly to damage the competition. If a grocery store sells you free oranges when you buy lemons, then you’re not going to buy the lemons next door, for instance.

Anyway, just a few thoughts – good luck

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