Free shipping. Is it still the golden ticket to winning customers and boosting conversions, or has its charm faded in the ever-evolving world of online shopping?
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The allure of free shipping – the OG of conversion tactics
Customers love the idea of getting something for free, and seeing zeros next to the shipping line at checkout is a great way of making your customers feel special.
For many online shoppers, free shipping can be the deciding factor between completing a purchase and abandoning the cart.
Statistics back this up too. According to a survey by the National Retail Federation, about 75% of consumers expect delivery to be free even on orders under £50.
The expectation for free shipping is strong and can be a powerful motivator for customers to choose you over your competitor.
The competitive edge
Offering free shipping will set your business apart from competitors and that’s vitally important in a crowded market, so any edge you can get is worth its weight in gold.
By offering free shipping, you’re not just meeting customer expectations; you’re exceeding them. This can enhance your brand’s image and foster loyalty. Customers are more likely to return to a store where they had a pleasant, cost-effective shopping experience.
Eating into profits
The big problem with free shipping though, is that it’s not actually ‘free’. Someone somewhere has to pay for it, and as the business owner, likely going to be you. So, what impact can this have on your business?
- Your profit margins: You might be able to absorb the cost of free shipping on every order, but then again you might not. Pushing your prices up may turn customers away before you’ve even shown them you offer free shipping.
- One size does not fit all: Free shipping might be a no-brainer for lightweight clothing, but what with heavier items, it might not be the most sustainable approach.
And how best might you be able to mitigate these issues?
Well, if you are catering to budget-conscious shoppers who prioritize low prices, they might be more swayed by discounts than free shipping.
You could also set a minimum order value to qualify for free shipping, which not only helps cover the shipping cost but also encourages customers to buy more.
Consider also offering tiered shipping options based on weight or product category.
Alternative strategies
Free shipping is fantastic, there aren’t many people out there who won’t agree that it’s definitely something they want to see when buying online, but it’s not the only way to woo your customers.
- Clear communication about shipping costs builds trust, if people know what they’re going to pay, with no hidden surprises at checkout, your transparency will pay off.
- Some customers are willing to pay for faster delivery, especially for last-minute gifts or urgent needs. Membership programs, like Amazon Prime, where customers pay an annual fee for benefits including free shipping, is a great example of this.
- Limited-time free shipping promotions. Drum up excitement with flash sales or free shipping weekends. This creates a sense of urgency and encourages impulse purchases.
- Free shipping on specific products. Using free shipping to incentivise purchases of lower-margin items or to clear out inventory can be a win-win for you and your customers.
- Partner with shipping providers like Asendia and see if their services make free shipping more affordable.
Free shipping is certainly a powerful conversion tool, but not an absolute necessity for every business. If your target market values convenience and premium service, free shipping will be important but other expedited shipping options can be another draw.
It’s essential to understand your customer base and see if it makes sense for you.
Experiment with different strategies, gather feedback, and stay flexible. At the end of the day, the best approach is one that aligns with your business goals and keeps your customers happy.
