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The Package as a Profit Center

Dec 30, 2015 | Blog | 0 comments

This holiday season, free shipping was more important than fast shipping for online shoppers, according to a report from Deloitte LLC. Internet Retailer broke down the findings of the study, saying “87% say free shipping is more important than fast shipping, and many (60%) expect retailers to offer free on-time shipping as late as Dec. 17. Offering free shipping this holiday season could cut into retailers’ profits, with UPS and FedEx raising fuel surcharge rates in time for the holidays.”

Sure, although free shipping feels magical, it isn’t really free. If shipping is free, retailers are assuming the shipping costs normally passed on to the online shopper. Naturally, this gives retailers more incentive to offset the costs they are incurring with free shipping. How are online retailers responding to the increased demand for free shipping? A Wall Street Journal article titled “Free Shipping Is Going to Cost You More“ observed that retailers such as Amazon, Best Buy and Gap “are boosting the amount online shoppers must spend to qualify for free shipping, hoping to cover the growing cost of providing the perk.”

Nothing against these fine retailers, but here at Minisoft, we think there’s a better solution for both retailers and online shoppers: using the package that’s already shipped to sell more. In other words, use DuplexPackSlip® Laser Forms to incorporate special offers, targeted cross-sells, loyalty rewards, or gift cards with every customer order, right on the package itself.

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While many retailers focus on optimizing the customer experience across all of their channels, there is one channel that has been largely ignored: the package. Is the package you ship ready for the next wave of online shoppers? Put differently, do your packages engage the customer, and draw them back to your websites for more shopping and buying?

Ultimately, there are only two ways to deal with the rising cost of free shipping: charge more or sell more. With DuplexPackSlip Laser Forms, the package becomes a profit center. Now that’s magical.