Today's online customers expect free shipping — but aside from lower margins, how does this affect retailers? GoECart CEO Manish Chowdhary has been locked in for a must see session at the Summit and is set to educate attendees on how their companies can actually thrive while still providing exceptional customer service, competitive shipping rates and fast delivery.

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How to Survive and Thrive in the Era of
Free Shipping
Operations Summit 2013
Thurs, April 25, 2013

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About Me and GoECart
 Founded in Feb 2000
 Hundreds of Clients ranging from small- and medium- sized
businesses to Fortune 500 companies
 Committed to Product Innovation and Client Success
(3 patents awarded, 3 pending)
 2013 SIIA CODiE Finalist for “Best Commerce Solution”
 Featured as a LeadingVendor in Forrester Research 2012 Guide
(SelectingYour Commerce SolutionAcross NorthAmericaAnd EMEA)
 2012 CQIA Gold Innovation PrizeWinner
 2013 StevieAwards GoldWinner for Best Customer Service
Thought Leadership Recognized By Industry Experts:

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US Online Retail Forecast

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Ecommerce Forecast Highlights
 $202 Billion in 2011
 $226 Billion in 2012
 $327 Billion in 2016
 10.1%+ CAGR from 2011 - 2016
 167 million people (53% of US population) purchased
something online in 2011
 192 million people (56% of US population)WILL purchase
something online in 2016
 $1,207 average yearly online spending in 2011
 $1,738 average yearly online spending in 2016.

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Customers are connecting with brands
and retailers differently
 More than 50% of mobile phones are now smartphones
 Tablet ownership reached 19% of adult population
 68% of online adults have a facebook account; including over
50% of adults over age 68
 56% of social networkers have liked, followed or became fan
of a brand, product or company

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Who are Shopping Cart Abandoners?

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Why are they abandoning?

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Top Reasons for Shopping Cart Abandonment

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Delivery Time and Abandoned Carts

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Options Online Shoppers Want to See

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Free shipping program stats and trends
 23% said high shipping costs discouraged them from making a purchase
 43% abandon their shopping carts when they find high shipping charges
at checkout
 60% said free shipping was a “very important” factor
 75% prefer to shop with merchants offering free shipping
 90% said free shipping offers entice them to spend more
 50% indicated free shipping offers made it more likely they would shop
online
 72% would switch merchants for free shipping

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8 types of free shipping offers
1. Total Free Shipping
2. Free ShippingWith Membership
3. Minimum Order Shipping
4. Select Item Shipping
5. Site to Store Shipping
6. Free Return Shipping
7. Flat Rate Shipping
8. Free Shipping by Delivery Location

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Pros of Free Shipping
1. Increased sales
2. Increased traffic
3. Move more inventory quickly
4. A competitive edge over those not offering free shipping
5. Gained prominence in search engines for the term "free
shipping" plus whatever item you are selling
6. Higher seller feedback score and higher star ratings
7. Less abandoned shopping carts
8. Can help build referrals through word of mouth and social
media praise

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Cons of Free Shipping
1. Product prices will be higher
2. Lower profit margin
3. Possible decrease in traffic from higher prices
4. Advertising costs and time to promote the free shipping sales
5. Customers come to expect free shipping
6. Added expense for the retailer and might cause a reduction of
other services
7. Discourages In-Store impulse buys
8. Shoppers might not enter the checkout stage to see what
shipping and final costs would be

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Ways to combat the free shipping dilemma
1. Include Shipping Charges in the Price of the Product
2. Free ShippingThreshold
3. Free Shipping Membership (e.g. ShopRunner,Amazon Prime)
4. Ship a Subset of Items for Free
5. Flat Rate Shipping (e.g. $4.99 per order)
6. Other Options
a. Explore all potential carriers and services including hybrid shipping (e.g. FedEx
SmartPost, InXpress, UPS Mail Innovations)
b. Ad supported shipping (e.g.AdShip)
c. Vendor discounted shipping
d. Pick up from store
e. Drop ship
f. Free upgrades
g. Audit your carrier bills or outsource it
h. Eliminate double shipping

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Ways to combat the free shipping dilemma
7. Rate Shop
8. UseAir Delivery Only if Necessary
9. Monitor DIM, Oversize Charges
10. Use Rewards Cards for Payments
11. Process Electronically
12. For Freight Shipments, Use a Broker
13. Seek Group Discounts
14. Request Discounts on Supplies
15. Watch for Billing Errors
16. Consider Outsourcing

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Death of Free Shipping?

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Welcome to GoECart360
The Ultimate All-in-One Multi-Channel Ecommerce Suite

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Ray Miller
 Founded MyWedding Reception Ideas.com in 2003
 GoECart Merchant since 2003
 E-commerce business built on supplier drop ship
business model
 15 Suppliers across the U.S. and Canada

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Competing In a Free Shipping Market
1. Increase product markup to offset shipping cost
2. Offer free shipping on order values over $100.00 (dollar
amount example) – No increase in product markup
3. Free shipping with no additional product markup

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Free Shipping Promotion Challenges
1. Increasing shipping rates
2. Lower profit margin
3. No control over shipping costs with drop ship business
model
a. Suppliers charging published ship rates
b. Supplier drop ship fees
4. Multiple item orders shipping from multiple warehouses

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Our Solutions to the Free Shipping Dilemma
Focus on converting sales without free shipping promotions
• Competitive product prices every day – no promotions
• Publish and charge real-time shipping costs
• Use of UniqueValue Propositions to sell our strengths
• Customer testimonials
• Easy web site navigation
• Easy ordering process
• Great Customer service before, during and after the sale

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Thank You!
Manish Chowdhary
Founder & CEO, GoECart
Toll-Free: 877-243-3612
Email: sales@GoECart.com
Twitter: @goecart
www.GoECart.com