The Pros and Cons of Minimum Purchase Requirements

There are responsibilities to building an e-commerce merchant account that extend beyond the technical and into the world of good business advice. Settling on whether or not to enforce minimum purchase requirements is one of those areas you may find yourself discussing with your client.

Minimum purchase requirements are sometimes put into place as a tactic to draw extra sales from a customer, all with the bottom line of saving on packing materials and shipping. But is this really a wise decision?

In a day and age where online competition is fierce, merchants scrap for business. It even happens with entities like Amazon.com and Barnes and Noble setting competitive prices on merchandise and offering similar shipping deals. The million-dollar question is: what good will it do your client to lose a sale—or a whole lot of them—by setting minimum purchase requirements?

The aforementioned Big Boys are good at setting precedents, and even if your clients don’t aspire to such a behemoth scale, there’s nothing to say you can’t take your tips from them. Rather than forcing customers to make a minimum purchase, simple persuasion tactics like free shipping for orders over $100 may prove more effective. Let’s face it, sometimes the only difference between being told what to do and being guided to a desired action is all perception.

 

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