Are a majority of your online customers abandoning items in the cart after seeing shipping costs? Offer membership-based free shipping to see a turnaround.

Read an in-depth recap of this research here: https://www.ama.org/2023/04/11/the-power-of-free-shipping-how-offering-an-upfront-membership-fee-can-help-online-retailers-boost-revenue/

Read the full Journal of Marketing article here: https://doi.org/10.1177/00222429231158116

Reference:  Fangfei Guo and Yan Liu, “The Effectiveness of Membership-Based Free Shipping: An Empirical Investigation of Consumers’ Purchase Behaviors and Revenue Contribution,” Journal of Marketing.

Narrator: Josephine Stein

Acknowledgments: Aman Soni

Topics: online retail, shipping, memberships, sales, consumer behavior, retailers

The JM Buzz is a production of the Journal of Marketing and is produced by University FM.