Need some feedback on Pelican business stuff...

[mrhaydndownes]

Hi Wayne...

At a summary (i.e. simplistic) level:
- I would recommend that you raise the "Free Shipping Threshold" (as already suggested by others)
- below the free shipping threshold, shipping costs should reflect actual.

From a competitive perspective, as long as your adjusted part prices + shipping (free or otherwise), are lower than the competition, you should still get the business.

Obviously this would require spot checking competitor prices, but I would recommend that you only do this for your top 5% selling products.

Also, your web store is a competitive advantage as it's far better and easier to use that your competitors.

And remember, their is no right answer to this question and any changes that you do make may take months before their results are seen.

Examples:

Based on my past behavior, I'll shop total cost of big orders between Pelican and a couple of other East Coast providers.

The other providers usually have lower part prices, but their shipping charges make the cost to me higher than yours.

For smaller parts, I seem to think that your shipping prices are still lower, so again I'll order from you unless I'm in a rush due to the transit time being shorter (time from CA to MA, instead of FL to MA, etc).

Haydn

[turbobrat930]

I have skipped over several pages of this, but here is my input:

I have NO problem with paying for shipping (on any size order). My issue is with the $100 minimum order. Sometimes, you guys might be the only one I can get a part from. That part might be $19.95, but I can not order it, unless I spend a minimum of $100.

I would gladly pay $15 to ship the inexpensive part. But since I do not have the minimum order, I end up going elsewhere. That has happened several times. I know for a fact that others have had this issue as well, as I sometimes see posts from others looking to put in a group order to meet the minimum. Those small orders would add up over time.

I say, shipping is a given cost no matter where you go... so, stop offering free shipping at all.

Just my .02

[Karter18]

[QUOTE=YTNUKLR;8256529]If I were you, I would kill Free Shipping in its current form.

The big reason I like buying stuff on Amazon Prime (with free shipping) is, I can place small orders for stuff without having to fill a cart to get a reasonable total order cost/shipping cost ratio. Amazon is in a different position though, and may be losing money on this part of their business. I am not sure if the $99/year covers their costs, or not.

However, I find it completely reasonable and generally find the economics acceptable, for paying shipping on a $150 order or a $500 order. That is where you give free shipping, and I think 99.9% of people would be prepared to pay for it.

In other words, free shipping has huge customer 'wow' factor on small orders, and has very little 'wow' factor on big orders.

You are currently not getting any wow factor for free shipping on small stuff, and not getting much wow factor on big orders, either. "

I totally agree with the above. I went in to get some fog light covers for $17.95 I would have instantly ordered them except for the $8+ shipping. Right or wrong but in my head it makes me hesitate to order as this is a very small item that does not require a lot of shipping material. Thank you for seeking input it is much appreciated

[TheSt|G]

Originally Posted by Wayne at Pelican Parts

We can spend our time working on that, or we can look for new and exciting products that our customers want, rather than what we want them to buy. I get turned off by sites (car sites in particular) pushing high-margin Asia-manufactured crap on their homepage, because the margins are much higher. I've never run Pelican that way - perhaps I may have to start thinking that way (or have my merchandising people start thinking that way).

-Wayne

If nothing else comes out of this thread, please do not do this. That will mark my departure. I give you my business because there is a degree of integrity in the products you offer(coupled with the honest customer feedback) that I simply can't get elsewhere.

[catuck]

You have built a faithful following with this BBS. I for one don't even shop around, I just buy from you. The free shipping is/was a nice perk, but it would not influence where I buy my parts. I can only speak for myself, but if you change the shipping fees it will not influence the way I buy my parts.

[porwolf]

[QUOTE=Karter18;8258705]

Originally Posted by YTNUKLR

If I were you, I would kill Free Shipping in its current form.

The big reason I like buying stuff on Amazon Prime (with free shipping) is, I can place small orders for stuff without having to fill a cart to get a reasonable total order cost/shipping cost ratio. Amazon is in a different position though, and may be losing money on this part of their business. I am not sure if the $99/year covers their costs, or not.

However, I find it completely reasonable and generally find the economics acceptable, for paying shipping on a $150 order or a $500 order. That is where you give free shipping, and I think 99.9% of people would be prepared to pay for it.

In other words, free shipping has huge customer 'wow' factor on small orders, and has very little 'wow' factor on big orders.

You are currently not getting any wow factor for free shipping on small stuff, and not getting much wow factor on big orders, either. "

I totally agree with the above. I went in to get some fog light covers for $17.95 I would have instantly ordered them except for the $8+ shipping. Right or wrong but in my head it makes me hesitate to order as this is a very small item that does not require a lot of shipping material. Thank you for seeking input it is much appreciated

I do agree with the above sentiment. It is the shipping charge for small parts and small orders that causes hesitation. These are parts ordered frequently when doing maintenance and/or major restorations. I think everybody here would like a simple, quick, uncomplicated address to get these items without doing much shopping around. For bigger items usually some shopping around with shipping charge and sales tax considerations is usually involved anyway. I would think shipping charges in those cases are less of a consideration.

So, for me, it would be great to charge a nominal flat fee of $5.- for an order like the above. Yes, it would be subsidized but it would instill great trust in Pelican Parts and guarantee repeat business because you don't feel like shopping around. Flat shipping fees could be staggered depending on orders. The free shipping for a $75.- minimum order could be dropped all together. That is one shopper's opinion.

[zippy_gg]

Originally Posted by Wayne at Pelican Parts

As for Will Call, we do have a pickup area in the front of the building. You must call in your order beforehand, and we'll let you know when it's ready!

thx,

Wayne

Thank you Wayne, I wasn't aware of this. Is it open on Saturday (for us working folks)?

[Wayne 962]

How do you think this would work? For small orders, then when you have an image like this:



Then a message that would say "Add these extra items to your cart without increasing your shipping by any amount?"

-Wayne

[blpetry]

Maybe I've got more money than sense, but I've never really worried about getting the free shipping, I order what I need and if I get the free shipping I get it, if not I don't. I usually don't. I shop at Pelican because:

1. You provide this forum. Without it I couldn't possibly have rebuilt my own engine.
2. You offer almost all of the parts I need for my car, at reasonable prices.
3. You offer a wide variety of shipping choices and your prices are close to your cost. BTW I'm in SW Ohio and USPS to Ohio ROCKS! If I order by Wednesday, I get it Saturday. UPS and FEDEX it comes on a truck and its getting there Monday if I'm lucky. I guess I don't plan ahead very well, but my project for the upcoming weekend is usually decided on Mon or Tues...
4. Every single shipment I've gotten from you has shipped the same day. If for some reason you can't ship it, the website tells me so.

If you take away the free shipping, you will almost certainly lose some of the business that people made just to get them over the free shipping limit, but I think your service and the fact that you stand very high above your competitors in that regard will leave you in good shape. Just work on that two warehouse thing... that's my main complaint if you could call it one...

[scotricker]

I agree with blpetry, I buy my parts here from Pelican. I don't go shopping around the internet to see if I can save a few bucks. If I get free shipping on some or none of my order, I'm OK with that. This forum community provides so much value, that I am not concerned with trivial costs associated with shipping. We need to understand that Pelican is a business and needs to be profitable. So even if shipping costs are reduced, or calculated to be at break-even, they shouldn't be at a loss.
Shipping costs should not be a profit center, but should not be a loss either.

Thanks for asking for our input. We are all here and are glad to be a part of Pelican.

[EdT82SC]

I too don't mind paying shipping. To me the most important part of the user experience is making it really easy to figure out shipping costs. From the cart I should be able to select a shipping method, and get the shipping cost without having to start the checkout process. A first time buyer would need to tell you where to ship to of course, but you would know this for repeat customers.

[tirwin]

Quote de porwolf

As for me, I am not overly concerned with "free shipping" as long as I am convinced that the least expensive shipping method are offered as part of the program. Time is often not important to me. I strongly suggest to keep or offer USPS priority Mail as an option. It seems to be often the least expensive shipping method, especially for smaller parts. And free Saturday delivery is part of their program..

Clipped and copied into my "Shopping Cart To Do" list - communicate with the customers about Weekend delivery for USPS. I don't think we do that currently inside the cart.



Cool!



-Wayne

+1

I recently made a pretty significant order and the shipping cost was small. The frustrating part is I missed a couple of little things (like crush washers and a couple of gaskets). Since I'm on the east coast it takes about 4 days for me to get stuff. I wish there was a way that I could get a bunch of small, light stuff in a couple of days. If I don't order everything I need on a Sunday night there is almost no chance I'll get it by the end of the week and that might be holding me up from making progress on the next weekend. So sometimes I'm forced to source things locally when I could/would rather but from you.

Obviously there are a lot of moving parts to the equation. "Frequent flyer" program a la Amazon Prime or if you spend over a certain dollar level you get extra fast shipping if you spend X dollars a year. I don't know what the answer is but shipping speed from your location to the east coast is the #1 reason I don't spend more with you than I already do.

I don't expect free shipping and the $3 shipping is pretty cool but I would spend $10 for a bunch of lightweight stuff that could fit in a shoe box that I knew I could get in a couple of days (including Saturdays).

[blpetry]

Originally Posted by Wayne at Pelican Parts

How do you think this would work? For small orders, then when you have an image like this:



Then a message that would say "Add these extra items to your cart without increasing your shipping by any amount?"

-Wayne

There are many useful things the site can tell us when building an order. The no additional cost shipping for an item is one of several I can think of that would be quite handy. Something like a "Wayne recommends these related items..." would be huge in my opinion.

You already have a feature where you show "what other customers bought" along with an item. But it comes pretty late in the process IIRC and its hit and miss as far as the relevance of the parts shown. You can also get to it on the details page for an item, but its not "in your face".

As an example, when I added cylinder base gaskets to my order, if it would have shown me that you recommend using curil-t on them, I would have ordered it at the same time. I'm pretty sure I wasted more money not ordering things I needed to buy than I ever saved on free shipping (there were at least 2 times I had some stupid gasket or seal I forgot overnighted so I could do my work for the weekend). Of course, in order to tell us that kind of thing, it has to be in a database somewhere for the software to look up. But its a simple item-to-item relationship that can be built over time.

You can also get into prebuilt carts by project... heater backdate, triangle of death, all the chapters in the 101 projects book, etc. That would save time and money for the customer getting the right stuff upfront and even generate some additional business I would think.

[sugarwood]

I had 2 opposite experiences this week. I needed a $30 part. The shipping was $3.50. I didn't hesitate and just ordered it. Normally, I try to think of what other items I might to mitigate the shipping, and many times I never end up ordering them. This time, I just put in the order since shipping was just $3. The next time I priced out a $30 part, the shipping was $11. I said forget it, and closed the window. I'll wait until I need more stuff.

I tend to view shipping as a percentage of my order. If the part is $5 and shipping is $5, I find it hard to pay double (100% premium). That's when I call the dealer. Paying $10 on a $100 order is more palatable than paying $5 on $5.
I think charging shipping on large orders and subsidizing smaller orders will result in more sales volume.

[jjeffries]

Wayne, thanks for creating a great company and all the extra value you add to energizing and supporting our hobby, pursuits and obsessions. I live in CT. and my '82 911 is new to me; I need to get used to the price of shipping cross country. I don't like your shipping system as it stands right now; it feels bad and mars the otherwise pleasurable process of buying your parts. Do away with the "free" thing, it feels deceptive, even though we know that's not your intention. I know the eventual solution won't necessarily be simple behind the scenes, but simple/reasonable is what i crave. Thanks.

[JohnJL]

I am a big fan and appreciate what our host does for us. That's why I buy first from here.

I do have what I think is a 'poster child' kind of order placed last night that has been discussed here.

I placed an order of about $2500. THe first 2 items, of a total of $190 that qualified for free shipping. THe next $2,300 was charged shipping. Not a big charge, but a bit of an irritant. THe second package is mostly from Elephant. I could have called Chuck directly and placed that order and may (or may not) have done better on the package overall or on shipping.

In any case, I am a satisfied, repeat customer so I am not saying it stops me from shopping at Pelican, but it is a bit of an irritant.

[Matthew Barnes]

Originally Posted by porwolf

As for me, I am not overly concerned with "free shipping" as long as I am convinced that the least expensive shipping method are offered as part of the program. Time is often not important to me. I strongly suggest to keep or offer USPS priority Mail as an option. It seems to be often the least expensive shipping method, especially for smaller parts. And free Saturday delivery is part of their program..

Pretty much sums it up for me.

As an international customer I am always keen to have a USPS option as the others are in most cases ridiculously expensive: 40 dollars shipping on a 25 dollar gear knob on eBay!

[moneymanager]

I have had little problem with anything you do on the shipping front. But there is one thing that always gripes me: paying $6 or $7 to ship something that costs $4. Sometimes the part I seek could go in an inexpensive foam envelope but arrives in a 4 x 4 x 6 box. Seems unnecessary. I have no idea how to deal with this issue but believe there are many who have the same reaction. Thanks for asking.

[cheekybird]

Wayne - You ask an age old question "Free Shipping or Not". All online retailers face this issue. I am all for a flat rate charge based on weight until your order hits a certain weight then use UPS only to calculate shipping based on weight and zip and do not mark it up. Thus your "item setup" should include weight. I believe this way you will lose some and win some on the lighter stuff and never on the heavy stuff. As mentioned USPS Priority is the best way to ship your light weight items and in my experience has never been an issue for shippers and customers. UPS is a great service but gets real expensive fast especially if you start trying to profit off of it (so don't). With as much shipping as you do I suspect UPS offers you discount rates on some services so pass those along. If you currently use multiple shipping services (Fedex Ground & UPS Ground) ditch Fedex Ground to increase your UPS volume. FedEx's independent ground delivery drivers are not timely and sloppy.
If you do not stock an item why sell it? OK, maybe you want to provide that service or be perceived as the end-all site (that is is fine and dandy and helpful to us) just do not charge for shipping from the third party warehouse and you eat it (since your profiting from never even carrying that inventory). You did nothing on that item except list it on your site. I like what you do already and how the site is laid out etc. Keep up the great work! As for international shipping, I suspect that is eating up a lot of time and money. I would think long and hard about how to tackle international shipping without it affecting your domestic shipping costs.

[whiskyb]

Shipping is a big factor in why I do not buy as much as previously on-line. Currently I need the tension clips for installing a headliner. They retail for $4.99 and shipping is $32. Cheapest option is $24 and worst is over $80.

My order is sitting in my checkout cart, I just cannot hit the buy button for those prices