As an ecommece retailer I am sure you have more often than you'd like, lower or offer prices lower than your competitors. Although your customers love this, it's bad for you, the seller. This can leave you with thin gross profit margins sometimes less than your shipping and fulfillment costs. By selling in "multi-unit" sales you can overcome this obstacle all the while still appeasing your customers.
In the example below offering a $5 flat rate shipping produces a net income of $5.10 for a single unit sold however with two-units sold the net income increases to $14.05. Although the "cost of goods sold" doubles with two units, the order fulfillment and shipping expenses do not.
Consumers love free shipping however shipping isn't cheap for you. It's common for sellers to have an order value threshold tied to their free shipping offer which helps ensure there's enough margin on the order. On the example below you will see how the numbers look when the seller offers free shipping instead of the $5 flat rate scenario. Here you can see that only $0.10 is made when offering free shipping on just one item. If you sell two items and ship them for free the net income increases to $8.05.
Have you offered coupons before and noticed a benefit to you? If this seller were to offer a 10% discount on all orders of $50 or more while keeping the $5 flat rate shipping, you will get the numbers below. Offering flat rate shipping of $5 will lead to the $5.10 (which you saw in the chart above) for a single unit sold however with two units sold and a 10% discount, the net income increases to $7.05.
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