For the love of books

Chandler: Hey, I just came across this really cool site LeBooks.in, which offers great discounts on books and also free shipping!

Ross: I also know of this other site, some Indie… Wait did you say FREE shipping??

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Consumers love free shipping, we all do. In fact who doesn’t?

Consider this:- Site A offers free shipping on all orders worth more than Rs. 150 while site B charges Rs. 10 per book and yet another site C charges a flat Rs. 30 per order. Which of the three sites do you think would be more popular?

My bet is site A. Simply because despite different discount structures, there is one thing constant, which Ross will always remember and that is site A ships for free. Site A has created a great marketing tool. Besides, by offering free shipping, site A is telling Ross upfront how much a book will cost even before he adds it to the cart and this enriches his customer experience. He need not undergo the hassle of adding a book to the cart and checking out till the end to know the final amount!! So even if Site A is at times not matching the discount by Site B or site C, the former is still expected to fare better, ceteris paribus.

In the Indian context, there is another factor. For some reason, as much as we Indians love free shipping we also hate paying for it. Better give us lower discounts but don’t ask us to pay for shipping. Why is it so?

Maybe it’s because we have been conditioned to think so from the early heydeys of e-commerce in India when ebay.in was still Baazee.

I remember sellers luring buyers by offering outrageous discounts and then in turn outraging them by levying ludicrous shipping charges to cover their costs.

In the West it is a well-established practice to pay for shipping. Even Amazon, which any Indian swears e-commerce by, charges for shipping unless the order amount is more than $25. In our case it would have translated to orders worth more than Rs. 750. Free shipping over there is used to incentivize the customers to buy in bulk; in fact there is a free shipping day. So why do we not also follow their practice rather than make a habit out of it here?

I would someday really like to explore this psychology of ours because when we were contemplating our own shipping policy for LeBooks.in, I myself was vociferous that we not charge anything!