Ben WiseGoogle · Head of Programmatic Media at Google | Speaker | Board Director | Startup Advisor

Why would anyone choose $8 instead of $10?

Name: Why would anyone choose $8 instead of $10?
Uploaded: 2025-07-15T14:30:30+00:00
Duration: 52 s
Channel: Ben Wise
Description: An e-commerce test found that offering free shipping beat a straight $10 discount, even though the discount was bigger. Shoppers feel pushed by discounts…

15 Jul 2025 · 1 min

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An e-commerce test found that offering free shipping beat a straight $10 discount, even though the discount was bigger. Shoppers feel pushed by discounts but relieved by free shipping. The $10 off still leaves them thinking about cost; free shipping just makes the friction disappear.

Chapters

If you were shopping online and I were to offer you a $10 discount or an $8 discount, what would you prefer? There was an e-commerce company that tested this and they got way better results on the $8 discount. But here's why. When I offer you a discount, that is perceived as pushing. I am pushing you to check out and buy whatever it is on my website. But there is an obstacle. There is a proverbial bark, but parking brake. What does everybody hate? Online shopping, more than anything else, paying for shipping. Shipping was 8 bucks. So he didn't say, we're going to give you an $8 discount. We're going to say, we're going to give you free shipping. And even though most people can figure out that the $10 would pay for that and leave you $2 left over, it was that emotional. This one is cushioning. This one is reducing the friction. And that had way more success and cost them less money to do.