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Article Title:
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Raise Prices and Make More Sales

Article Description:
====================

Are you afraid to raise the prices on products in your online
store? Do you think you have to have the lowest priced item on
the web to make a sale? You are probably wrong. 


Additional Article Information:
===============================

766 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2006-09-20 14:24:00

Written By:     Philip Busk
Copyright:      2006
Contact Email:  mailto:[EMAIL PROTECTED]



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Raise Prices and Make More Sales
Copyright © 2006 Philip Busk
www.buskerdoo.com
www.buskerdoo.com



Are you afraid to raise the prices on products in your online
store? Do you think you have to have the lowest priced item on
the web to make a sale? You are probably wrong.

Recently I was told to try to raise prices and include "free"
shipping on one of my online stores. I tested the results over a
three month period and guess what? The site had more sales with
higher prices. It's not really the higher prices that created
more sales; it's the free shipping message.

Offering free shipping and raising prices to cover the cost of
shipping increased conversion and sales by twenty percent.
Conversion rates increased another fifty percent when I created a
compelling free shipping message and made it one of the first
things seen when landing on the home page.

High Search Engine Rankings Is Not Enough

As a search engine marketing professional, many times I use my
own sites to test new search engine ranking techniques.
Consequently, my online stores tend to rank pretty high for thier
particular product niche.

One of my online stores offering CD racks and supplies had good
traffic and high search engine rankings but had a low sales
conversion rate. The site was listed on page one of Google's
search engine for several of the targeted primary keywords.

With traffic and search engine placement in decent shape, I
looked at conversion metrics. The site was below the industry
average for conversions. A consultant suggested that I test a few
methods to increase sales including adding free shipping.

Just Raise The Price, It Will Be Ok

We added free shipping on every product but didn't want to loss
any profit margin. I was nervous about raising prices in a very
competitive market. I also felt that people would just do a first
look comparison of our "shipping included" number to the next
sites listed price that didn't offer free shipping. The
consultant said to just try it and see how it goes.

By adding the average price of shipping to each item we could put
the delivered price in the store and not change profit margins.
After one month, I could see that free shipping on this site was
a good idea. Conversions increased over twenty percent. That was
a nice increase but it wasn't close to what I expected.  We
needed to make sure every visitor absolutely couldn't miss
knowing products would be shipped for free.

Make Your Free Shipping Message Obvious

Studies show "Delivered Price" or "Shipping Included" aren't
compelling messages to web surfers and "Free" draws the eye and
initiates action. "Free Shipping" and "We Pay for Shipping" were
both added close to the product buy button. That change increased
conversions by ten percent. A month later we decided that because
many searchers entered the site via the home page, there had to
be a bold free shipping message added at the point of site entry.
Adding the words "Free Shipping" and "We Pay for Shipping"
prominently on the home page raised conversions more than fifty
percent.

A Few Extra Benefits From Offering Free Shipping

There are other benefits to offering free shipping for both store
owner and store customer. The owner has no shipping charges to
track and there are less ordering problems due to bad links to
shipping companies. The shopper can make easy price comparisons
and doesn't have to figure out shipping prices by going
partially into the check-out tunnel. Customers also get through
the check-out tunnel with less decisions to make and buttons to
click. Less is always better in the check-out process.

More improvements can certainly be made in this area. We still
get calls from people that want to be assured the shipping is
free and that the price they see next to the buy button is the
price that will appear on their credit card.

Just Try Offering Free Shipping And See How Well It Works

If you have a site that sells product, seriously consider
offering free shipping. Just try it out. You really have nothing
to lose except some time.

Assuming your site already sells a good product and has a decent
layout, good navigation, and a clear message, free shipping
should be on the top of your list of techniques for bumping up
conversion rates. You will see results. If you get results close
to the ones I experienced, you will see conversion rates increase
by over fifty percent of there present value. A conversion
increase of ten percent is great for your bottom line and fifty
percent is even better. 




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Philip Busk is a recognized expert in the compact disc and cd packaging 
industries, sales and marketing, and search engine optimization. See 
http://www.buskerdoo.com for examples on implementing free shipping. 


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