06/09/2023
As an ecommerce retailer, one of the most important decisions you will make is how to handle shipping. Offering free shipping is a strategy that has gained popularity among online store owners, and for good reason. In this article, we will explore the benefits of offering free shipping in an online store and why it can be a game-changer for your business.
1. Increased Conversion Rates
One of the primary benefits of offering free shipping is the potential for increased conversion rates. When customers see that shipping is free, it eliminates a major barrier to making a purchase. Studies have shown that high shipping costs are one of the leading causes of cart abandonment. By offering free shipping, you can significantly reduce the number of abandoned carts and increase the likelihood of customers completing their purchase.
Furthermore, offering free shipping can also lead to higher order values. Customers are more likely to add additional items to their cart in order to qualify for free shipping. This can result in larger average order sizes and increased revenue for your business.
2. Competitive Advantage
In today's crowded ecommerce landscape, it's important to find ways to stand out from the competition. Offering free shipping can give you a competitive advantage and differentiate your online store from others in your industry. When customers have the option to choose between a store that offers free shipping and one that charges for shipping, they are more likely to choose the former. By offering free shipping, you can attract more customers and increase your market share.
3. Improved Customer Satisfaction
Another benefit of offering free shipping is improved customer satisfaction. Customers appreciate the convenience and cost savings of free shipping, and it can leave a positive impression of your brand. When customers have a positive experience with your online store, they are more likely to become repeat customers and recommend your store to others. By offering free shipping, you can foster customer loyalty and build a strong customer base.
4. Marketing and Promotional Opportunities
Offering free shipping also presents marketing and promotional opportunities for your online store. You can leverage free shipping as a marketing tool to attract new customers and promote special offers or sales. For example, you can offer free shipping for a limited time to coincide with a holiday or special event. This can create a sense of urgency and encourage customers to make a purchase. Free shipping can also be used as an incentive to encourage customers to sign up for your email newsletter or follow you on social media.
Additionally, free shipping can be a powerful tool for upselling and cross-selling. You can offer free shipping on orders over a certain dollar amount, which can incentivize customers to add more items to their cart. This can lead to increased sales and help you maximize the value of each customer.
Conclusion
Offering free shipping in your online store can provide numerous benefits, including increased conversion rates, a competitive advantage, improved customer satisfaction, and marketing opportunities. However, it's important to carefully consider the financial implications of offering free shipping and ensure that it aligns with your business goals and objectives. By weighing the pros and cons and implementing free shipping strategically, you can take your online store to new heights and achieve success in the competitive ecommerce landscape.
Contact us
Spanning 8 cities worldwide and with partners in 100 more, we’re your local yet global agency.
Fancy a coffee, virtual or physical? It’s on us – let’s connect!