STRATEGY: Is It Worth to Offer Free Shipping?

STRATEGY Is It Worth to Offer Free Shipping Multiorders

One of the most effective ways to increase your conversion rate is to offer free shipping. Because, then your customer sees, that your online store does not have any hidden fees. Also, it is more acceptable to see the full price without any extra charges. This e-commerce strategy could remarkably escalate the number of your sales. For this reason, we gathered all possible ways on how to avoid profit loss and found the 5 TOP ways to offer free shipping.

 

 

Things you need to know before you decide to offer free shipping

 

First of all, you should understand that there is some risk of losing your profit. For example, shipping major parcels has additional shipping rates. Also, if the product value is low, your free shipping solution may drain your profit down. Another situation is if your customer is from another side of the world. For these reasons, you have to carefully consider each one of these situations. After that, you can choose one of the strategies on how to offer free shipping. Only when you know your numbers you can select the strategy which is worthy and brings you a bigger conversion rate. Carefully evaluate:

  • Product weight and size
  • Customer’s location
  • Profit margins

 

 

5 ways to offer free shipping

 

 

1. Higher prices

The first and the most convenient way to offer free shipping is to boost your pricing. Of  course, the new pricing cannot be too high compared to your competitors. You have to carefully evaluate and predict the shipping rates. Then add a small price to your product price. That is not exactly free shipping, but this will impact your conversion rate. Simply adding a few dollars to your pricing, will also partly cover the shipping rates for you. Still, your customer will appreciate the fact that you offer free shipping. 

Higher prices offer free shipping

 

 

2. Establish your baseline

 

One of the most profitable ways to offer free shipping is by establishing your baseline. It will definitely save your margins and also improves conversion rates. For example, you can announce that free shipping is available for orders over 100$. Usually, this strategy forces your customer to spend more to get that free shipping. Also, there are more chances that you won’t lose money, while you have established your baseline. Keep in mind that your baseline should be directly linked with your average product price. Otherwise, if you set it too high, then your customers won’t be determined to invest that much. Establishing a reasonable baseline would definitely help gain more profit.

Establish your baseline offer free shipping

 

3. Member benefits

Creating a circle of loyal customers will definitely improve your relationship with them. Adding free shipping for them would not only further escalate it, but also attracts new members. Besides, member programs are getting more popular, so it is a convenient time to create a loyal audience. You could even create a holiday contest and offer a free membership for a month. It would definitely draw more attention to your company. Also, your members will feel more appreciated, while you offer free shipping.

Member benefits offer free shipping

 

4. Categorized shipping per-product

This strategy helps stimulate shoppers to buy a certain type of products. For example, for a few months, you could offer free shipping on shoes and that way escalate these purchases. Despite that, you need to think about the measurements of your parcel and the shipping rates. This tactic impacts conversion rates for a certain product category. Also, it attracts customers to check your online store and make more orders.

Categorized shipping per-product offer free shipping

 

5. Free shipping

In other words, offer free shipping on everything. This is one of the first tactics which should pop into your head, but you should also think about the consequences. This method will be suitable only for those who sell a lightweight and small product with a high-margin. For example, it could be jewellery or portable electronics. This strategy to offer free shipping will definitely escalate your conversion rates. Also, if you are capable of using this tactic be vocal about it and announce it to your customers.

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Senior Copywriter at Multiorders

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 1 reviews
Great guide

Very well written and the points to consider are very well researched.

Goda Jurgaityte