Why You Should Offer Free Shipping
Unexpected shipping costs are the top reason for cart abandonment among shoppers. Cart abandonment cannot be eliminated completely. But eliminating unexpected shipping costs can help.
To help you increase your sales, we are going to break down ten innovative methods by which your e-commerce business can offer free shipping to its consumers. We’ll go through how you can provide it, how it will affect your business, and whether or not a free shipping option is right for you.
1. Free Shipping on Everything
The simplest method to provide it is to include it with all of the products and purchases. Building shipping costs into your product costs can help you avoid surprise shipping charges and cart abandonment and increase sales.
Buyers will certainly notice this irresistible offer, and it’s a wonderful way to attract their attention. However, if your products vary significantly in size and price, this method may wind up costing you more money than you originally planned.
This technique is suited for e-commerce companies that sell small products on a regular basis within a specified price range. Offering free shipping will be more cost accurate instead of a fluctuation.
You may also provide it on all orders by simply raising the overall price of your items and including shipping in the final cost at checkout. By doing this, you’re creating the impression of “free delivery” without absorbing the shipping cost yourself.
This method also works best for small and similarly priced items.
If free shipping isn’t a sustainable method for your company consider offering occasional free shipping promotions.
2. Minimum Thresholds
This is a very popular option that we see everywhere. By using a minimum order threshold, you encourage your customers to spend more in order to reach the goal of free shipping.
Ex.: Free shipping on all orders over $75
Once a customer reaches a certain amount in their cart, simply queuing an automatic notification that they’re X amount away from free shipping, is almost a guaranteed way to increase your average order value.
3. Certain Times of the Year
Providing free shipping during certain periods of the year is a sensible and strategic move, much like offering discounts during peak season. Providing free shipping (and even bundling it with a minimum threshold or a bundle deal) for a particular period of time may significantly increase your company’s sales.
If, on the other hand, you’re aware that you have slower selling months, you might consider offering free shipping during the lower times of the year. This will provide your consumers with an incentive to make purchases during off-seasons.
4. Specific Locations
If you’re concerned about providing free delivery because of costs in certain locations, you can simply restrict it to particular regions.
Even though international delivery is more expensive than domestic shipping, free shipping may still be a factor. Choosing to restrict your free shipping promotions to areas where you receive the lowest shipping rates, allows you to provide a bargain to your consumers while still spending less money out of pocket.
This might also encourage certain customers to make purchases when targeting their area with limited-time free shipping.
5. Member & Loyalty Programs
Your best customers are the ones you already have.
Introduce a member or loyalty program that includes a shipping discount.
Not only will more people be encouraged to sign up for free delivery, but it will also give the impression that the offer has been restricted to an exclusive “members only” group.
Some businesses opt to charge a fee for membership, while others do not. A loyalty program will encourage buyers to sign up with the promise of free delivery in exchange for their information.
Send them an email with their discount code, a”welcome to the red carpet” message, and voilà – you’ve gained a new happy email subscriber.
Fun Fact: Did you know that 77% of customers only open promotional emails in search of relevant discounts?
6. Returns
Free shipping on returns may be a fantastic option for a company that deals with often returned items (i.e. clothing stores).
For customers who frequently buy clothing online, it’s understandable that sometimes the fit just isn’t right.
Providing free shipping on returns will encourage consumers to purchase items without the anxiety of whether or not they will fit. Simply because, if it’s not perfect, exchanging it for the correct one will be quick and easy.
Additionally, this means customers will be more inclined to continue buying with your business because of the simple and easy return procedure.
Fun Fact: Did you know that 93% of customers are inclined to come back to a business that offers hassle-free returns and great customer service, regardless of their buying experience?
7. Campaigns
Running campaigns is a great idea for any business, and free shipping campaigns are often the most successful.
Just like holiday campaigns where you offer promotional deals and bundles, offering free shipping is equally as enticing. Offering free shipping in conjunction with holidays, similar to peak season, can encourage people to purchase during a set time frame.
You don’t have to limit your campaigns to holidays either. Your options are endless.
- Charity Campaign
- Anniversary Campaign
- Back to School Campaign
- Spring Campaign
9. First Time Customers
Nothing pulls in a new customer like the promise of free shipping.
If site-wide free shipping isn’t for you, consider offering it to your first-time customers. This will not only encourage customers to click that “buy now” button but will also increase your email list and the chance for repeat customers.
10. Number of Orders
Providing free delivery for a limited number of purchases is just as attractive as offering it for first-time buyers.
Ex.: Subscribe for three months and receive three months of free shipping!
This is a great way to encourage customers to sign up for automatic payments, monthly purchases, or recurring orders.
Beginner’s Guide to Third-Party Logistics (3PL)
The world of e-commerce is always changing, therefore understanding the roll of Third-Party Logistics is integral to keeping up. In light of this our beginner’s guide to third-party logistics (3PL) will delve into the essential aspects, offering insights into fulfillment services, warehousing, and much more.
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Shipping with Falcon Fulfillment
To understand more about how to utilize shipping methods and integrate Q4 necessities into your e-commerce business, we recommend that you read our in-depth peak season holiday fulfillment guide, which is available for free download here.
Our expertise in the fulfillment and e-commerce industries is something that we take great pride in here at Falcon Fulfillment. That’s why we strive to provide our readers with valuable information that e-commerce businesses can put to use right away.
