Transcript

Lucas: So you're on a website, you've got a cart full of stuff, and right at checkout you see two offers. One is a ten percent discount code, the other is free shipping. Which one makes you click buy? Luna: Honestly, free shipping. Every time. I don't even do the math. Lucas: And that's exactly the point. Psychologically, those two offers might be worth the same in absolute terms, but our brains treat them completely differently. And there's a famous experiment that proves it. Luna: Oh, I think I know where you're going with this. Amazon, right? Lucas: Exactly. In 2013, Amazon ran a test in some markets: instead of offering a ten percent discount on orders over a certain amount, they offered free shipping on the same threshold. The result? Free shipping drove nearly twenty percent higher order value than the discount. And that's not a small bump.