An Exploratory Examination of the Impact of Customer Service Features on Conversion Rates for Online Retailers

This paper considers the optimal purchasing decisions of a consumer when online retailers provide contingent free shipping service under delay delivery. A consumption decision model for online consumers is proposed by establishing net consumption surplus function under delay delivery, which comprehensively considering all of the conditions including the product price, delay time, free shipping threshold given by online retailers, as well as the consumer's individual characteristics relate to the preference for the product and sensitivity on delay delivery, which can be used to analyze the best purchasing decisions of an online consumer. Finally, a numerical example proves the reliability of the model, and the result shows that a consumer's optimal purchasing decisions mainly depend on the comparison of free shipping cut off level under delay delivery and consumer's specific parameter about the preference for the product and sensitivity on delay time. Simultaneously, it indicates that free delay shipping service with a reasonable threshold could attract additional consumers with middle consumption desire to enlarge purchasing amount, which can be used as a reference for online retailers to set an effective free delay shipping strategy.

This study analyzes the effect of price discounts, free shipping, and online store atmosphere on purchase intention in TikTok Shop's live streaming. The research method used is quantitative, with a sample of 100 respondents collected through Google Forms distributed on social media platforms. Using three independent variables (Price Discount, Free Shipping, and Online Store Atmosphere) and one dependent variable (Purchase Intention), the results showed that Price Discount (sig. 0.000), Free Shipping (sig. 0.034), and Online Store Atmosphere (sig. 0.000) each have a positive and significant effect on Purchase Intention. Simultaneously, the three independent variables have also been proven to significantly affect purchase intention. The coefficient of determination test results show that price discounts, free shipping, and online store atmosphere can explain 76.1% of the variation in purchase intention, while other factors outside the research model explain the remaining 23.9%. These findings provide practical implications for online stores to pay attention to discount pricing strategies, provide free shipping services, and create an attractive online store atmosphere in order to increase consumer buying interest effectively.

The rapid development of e-commerce (online stores) in Indonesia has attracted significant attention, especially among students, who represent a potential market segment. This study aims to analyze the impact of discount promotions and free shipping on purchase decisions through e-commerce among students at the Muhammadiyah-‘Aisyiyah Higher Education Institution (PTMA) in the Greater Jakarta area (Jabodetabek). This research uses a quantitative approach with a survey method, where questionnaires were distributed to 80 selected respondents using purposive sampling. The data collected were analyzed using multiple linear regression techniques with SPSS software. The results of the study show that both discount promotions and free shipping have a positive and significant impact on purchase decisions, both partially and simultaneously. Discounts and free shipping were found to be key factors in influencing purchasing decisions and increasing the shopping interest of students on e-commerce platforms. It can be concluded that appropriate promotional strategies, such as price reductions and free shipping, are effective in influencing consumer purchasing decisions in the digital marketplace. This study is expected to provide valuable contributions to e-commerce players in designing more effective promotional strategies and offer additional insights for academic research on consumer behavior in the digital market.

Free shipping promotions have become popular among online retailers. However, little is known about their influence on consumers’ purchases, return behavior, and, ultimately, firm profit. The authors propose that free shipping promotions encourage customers to make riskier purchases, leading to more product returns. They estimate the impact of these promotions on purchase incidence, high-risk and low-risk spend, and return share. The results show that free shipping promotions increase expenditure for high-risk products, expanding their share of the consumer’s market basket and thus increasing the overall return rate. This is validated in a field experiment. A field test and an online lab experiment analyze the mechanism linking free shipping and returns. The results suggest that the free shipping effect occurs through consumers’ perceptions that free shipping serves as a risk premium compensating them for potential returns and through positive affect generated by the promotion. A simulation shows that for the focal firm, free shipping promotions increase net sales volume, but higher product returns and lost shipping revenue render these promotions unprofitable.

Abstract: Along with technological developments, the world of marketing has now changed. Studying E-consumer behavior from a renewable aspect is needed to create practical and efficient marketing, research that refers to digital marketing (Digital Marketing), especially the E-Marketing marketplace. This study examines online consumer behavior that focuses on purchasing decisions and renewable factors that influence it, namely: customer reviews and the promotional tagline "Free Shipping" for shopee marketplace consumers in Surabaya. The chosen mediator variable is Price Discount. The sample in this study was 100 respondents from Surabaya, East Java, Indonesia. The analytical tool used is mediation analysis using the SmartPLS 3.5 tool. The hypothesis was investigated using customer reviews, promotional taglines, price discounts, and promotional taglines on e-purchase decisions mediated by price discounts. Based on the analysis results, all the tested hypotheses have a positive and significant effect on the E-Purchase Decision. The Price Discount variable is a mediator variable that can strengthen the Tagline Promotion variable in the E-Purchase Decision. This finding is expected to make a real contribution for sellers in the marketplace at Shopee to pay attention to Customer Reviews so that consumers don't give negative feedback to their online stores. Always provide free shipping promos so that consumers are not burdened with purchasing costs. The discount can benefit consumers and pay attention to the mediator variables studied so that consumers who buy are more likely to buy the product.

Consumers now favor live commerce greatly, especially those in the younger age group because it offers a direct interaction experience between sellers and customers. The purpose of this study is to analyze the influence of service quality, price, trust, customer reviews, and free shipping on purchase intention in TikTok Live Commerce among students at Institut Teknologi dan Bisnis Muhammadiyah Purbalingga. The population in this study was all students of the Muhammadiyah Purbalingga Institute of Technology and Business, totaling 73 people. The data collection method used in this research is a direct field survey, which involves sampling from a single population using a questionnaire as the main data collection instrument for explanatory purposes. The research findings indicate that service quality has a positive and significant influence on purchase decisions; price has a positive and significant influence on purchase decisions; trust has a positive and significant influence on purchase decisions; customer reviews have no significant influence on purchase decisions; and free shipping has a positive and significant influence on purchase decisions

This study aims to explain the effect of free shipping, cash on delivery and consumer trust on online purchasing intentions with a special study of Management Study Program students at the Faculty of Economics and Business, Bengkuu Muhammadiyah University. The method used is quantitative method and uses descriptive data analysis. The data analysis technique is a step that has been taken by the researcher. Sampling uses the Simple Random Sampling technique. to infer the meaning of the data that has been collected. This study uses multiple regression analysis. The results of research that has been done on the effect of Free Shipping, Cash On Delivery and Consumer Confidence on Buying Interest at Online Shops in Bengkulu City based on the correlation coefficient test obtained the value of R = 0.871 and the coefficient of determination R^2 = 0.758 value means that Free Shipping (X_1), Cash On delivery (X_2) and Consumer Trust (X3) contributed 0.758 or 75.8% to Purchase Interest (Y) at Online shops in Bengkulu City while the remaining 0.242 or 24.2% was influenced by variables others that were not included in this study.
 Keywords: Free Shipping, Cash on Delivery, Consumer Trust, purchase interest

It's not only what they buy, it's also what they keep: Linking marketing instruments to product returns

The rapid development of technology has changed the way people live, as well as the lives of students. Online shop is one of the platforms to make it easier for consumers to shop 24 hours a day without having to face to face. Online stores implement several price discount strategies, free shipping to attract consumers. The purpose of this research is to understand how price discounts, free shipping, and viral marketing affect students' decisions to buy in online stores. The method used was quantitative with a sampling technique using purposive sampling. The total population in this study is 1484 students. To collect researchers, use a questionnaire distributed online through a google form in the Student Association group on the whatshapp application. 153 people were the researcher's sample for this study. According to the findings of the t-test study, the price discount variable has a significant value 0,003 0,05 and calculation values 3,004 t-table 1,97601. This shows that students' decision to buy from online retailers is somewhat influenced by the variable of price discounts. With t-count value 0,702 t-table 1,97601 and significant value 0,484 0,05, The free delivery variable has no influence on students' decision to buy at online retailers. With a value of sig. 0,000 0,05, and t-count 4,156 t-table 1,97601, Viral marketing variables are known to have an influence on students' online shopping decisions. Meanwhile, simultaneously the variables of discounts, free shipping and viral marketing have an effect on students' purchase decisions in online stores and the value of f-calculation 19,404 f table 2,67 and niliai significance of 0,000 0,05.

A consumer‐side innovation in online retailing is membership‐based free shipping (MFS) in which a retailer bears the shipping cost for purchases made by members that have paid an upfront membership fee. On the supplier side, the agency model of selling, where a retailer allows a third‐party manufacturer to sell his product on the site for a commission, has been gradually replacing the wholesale model, where the retailer buys from the manufacturer at a wholesale price and resells to consumers at a retail price. We show that the shift to the agency model enhances the value of the MFS program to the retailer in the sense the retailer gains more from the MFS program and MFS is profitable to the retailer in a larger region of the parameter space under the agency model than the wholesale model. The retailer's gain from MFS comes at the expense of consumers and the society under the wholesale model, but the consumers and the society can also benefit from MFS under the agency model. The key driver of these results is that, under the wholesale model, the MFS program increases the severity of the double‐marginalization problem because the MFS program increases the retailer's marginal cost; however, under the agency model, the MFS program reduces the impact of marginalization at the manufacturer end because the manufacturer faces consumers with lower purchasing cost on average. Thus, the MFS program hurts channel coordination in the wholesale model but helps it under the agency model.

Impact of Free Shipping Threshold on PC and Mobile Channels: Evidence from an Online Retailer

The study, which meticulously examined the Impact of Free Shipping on Consumer Satisfaction and Loyalty as an Online Business Marketing Technique in Metro Manila, 2024–2025, utilized a descriptive-correlational research design to quantitatively analyze the influence of this key logistical strategy on consumer behavior among active online shoppers in the National Capital Region. Grounded in the Expectation-Confirmation Theory (ECT) and the Commitment-Trust Theory of Relationship Marketing, the research addresses the local empirical gap by investigating how free shipping, as the independent variable, directly affects Customer Contentment (satisfaction) and Buying Loyalty (dependent variables). The methodology involved administering a researcher-made questionnaire to a sample of online shoppers in Metro Manila who have utilized free delivery services, with the primary objective of testing the null hypotheses, such as Ho1 Free shipping has no significant relationship with customer contentment, at the 0.05 level of significance. The findings are expected to establish a highly significant positive relationship between the provision of free shipping and both consumer satisfaction and buying loyalty, confirming that eliminating shipping costs meets consumer expectations and translates directly into customer retention and repeat purchase behavior. Ultimately, regression analysis is anticipated to confirm the significant predictive power of free shipping, underscoring its essential role in driving market share and ensuring long- term profitability by strengthening trust and commitment in the competitive Metro Manila e-commerce market.

Exploratory analysis of free shipping policies of online retailers

Background: There are reports of prescription stimulants being purchased online for use as cognitive enhancers or “smart drugs.” Objectives: The aim of this study was to investigate availability of modafinil and methylphenidate from internet suppliers from the perspective of a typical United Kingdom (UK) based customer. Methods: Using European Monitoring Center for Drugs and Drug Addiction (EMCDDA) internet snapshot methodology, we undertook an English language internet snapshot survey in July-August 2018 to gather information on the availability and price of modafinil and methylphenidate from online retailers. Results: A total of 55 modafinil and 14 methylphenidate websites were identified from which the drug could be purchased without a prescription. Minimum purchase quantities ranged from 10 to 90 tablets for modafinil and 1–1,005 tablets for methylphenidate with no apparent upper limit to the number that could be purchased. The price per tablet varied from £0.38–5.31 for modafinil and £0.16–5.70 for methylphenidate. Free shipping was offered if more than a certain amount was spent on 46 (83.6%) modafinil and 7 (50.0%) methylphenidate websites and discounts were offered on 43 (78.2%) modafinil and 4 (28.6%) methylphenidate websites. Conclusions: Modafinil and methylphenidate are widely available to purchase via internet from the UK without a prescription. The pricing on websites encourages users to buy greater quantities to qualify for discounts and free shipping. The quantities available suggest these purchases may be used in greater amounts than would be legitimately prescribed, increasing the risk of misuse or diversion to other individuals.

To incentivize more consumers to purchase, many online retailers consider shifting from threshold-based free shipping to unconditional free shipping. However, they fear this could lead to reduced o...