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Free shipping sales seem to go over really well. I read somewhere that shipping costs are one of the leading causes of "shopping cart abandonment". I think international customers are used to having to pay more for shipping from US merchants, so I would just make it Free Shipping to the US (and maybe discounted shipping internationally)

I like to give 10% off coupons during the checkout process to help encourage the customer to finish the order.

Do you have a lot of orders above $100? It seems like a high amount for a customer to reach for a normal t-shirt site.
 
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