Freight promotion.
1. What is a freight promotion?
Sellers can set their own freight discounts, set free logistics channels, and the amount of reduction. It can be free of all freight or partial freight.
2. Why set up a freight promotion?
By setting up a freight promotion, you can attract more users. Freight promotion is similar to what we usually call free shipping. Users are more willing to buy goods in stores that offer free shipping.
3. Steps to set up a “freight promotion”
Path to enter “freight promotion”: Seller Center > My Marketing Activities > Freight Promotion. Set up a “freight discount”.
a. Promotion name: not displayed to users, for sellers’ reference only, up to 20 characters can be entered.
b. Promotion start/end time: Regular activities can be set to “unlimited”, and sellers can manually end the activity at any time. For activities for a certain period of time, sellers can choose “activity interval” to set the corresponding activity time.
c. Delivery channel: Select the logistics method of the activity.
d. Shipping.
· Fixed shipping for the minimum consumption amount: Sellers can set corresponding fixed shipping costs for 3 minimum consumption amounts.
· Free shipping: Sellers bear the shipping costs for buyers.
4. Skills in practical freight promotion
The purpose of setting up freight promotion is to encourage buyers to buy multiple items. The free shipping threshold is set according to the average price of the store’s products and its own profits. For example: the average price of the store’s products is NT$300, the gross profit is 20%, and the profit is 300×20%=NT$60. The shipping cost for buyers in Taiwan is also NT$60. If the free shipping threshold is set below NT$300, then the seller will lose money for every free shipping order. Therefore, in this case, the free shipping threshold should be raised above the average price of the store’s products, such as “free shipping for orders over NT$399” so that the seller will not lose money.
Sellers who have participated in the platform’s FSS activities (platform free shipping activities) should no longer set up their own store free shipping in the background. When buyers check out, the platform will automatically identify the most favorable preferential plan for buyers for settlement. If your customers reach the free shipping promotion threshold set in the store background, the store freight promotion will be used directly instead of the platform’s FSS free shipping activities, because FSS free shipping requires buyers to collect free shipping coupons, while the store background free shipping promotion does not require buyers to collect coupons.
If sellers participate in the FSS free shipping activities and set up free shipping promotions in the background, there is a risk that the platform will deduct two shipping costs, one is the shipping cost that the seller sets up in the background to waive for buyers, and the other is the FSS activity commission collected by the platform.
For example, I participated in the platform’s FSS activity in Taiwan, China, and free shipping was free for orders over NT$299. Then the platform will charge an additional 5% commission on the transaction amount for all completed orders in my store. In addition, I set up a free shipping promotion for orders over NT$299 in the background. When the buyer’s order amount reaches NT$299, the buyer can enjoy free shipping. When the order is completed, I can see that the platform deducted NT$60 buyer shipping fee + 5% platform free shipping commission from my order amount.