How to Offer Free Shipping for Your Ecommerce Store Profitably: The Ultimate Guides

Today most customers choose not to pay shipping fees. It has become a phenomenon in the online shopping market, for some reason. In the earlier blogs, Autoketing provided merchants an overall look at how free shipping can be extremely beneficial for your business. However, repeat to offer free shipping in non-strategic ways cannot retain your customers, so how? 

Free shipping is a far more reliable deal and if you do it right, you will greatly benefit from that. 

However, some eCommerce stores have problems with self-finance to provide free shipping for customers, since free shipping is an expense which retailers would have to pay. Although retailers can not eliminate the costs entirely, they can operate smartly some ways to significantly reduce the costs.

In this article, let’s go through a few tips that you can do to encourage your business to offer free shipping, or at least reduce the burden that comes with it.

Why offer free shipping? 

Many surveys have shown adding free shipping to eCommerce stores is a super effective way to boost your sales and AOV.  

According to Walker Sands Communications, 90% of people said having a free order ship is the greatest reason to add more to their cart, while another survey found up to 74% of shoppers would abandon their cart if delivery charges were too heavy.

Free delivery as you can see, a driver of revenue. People would definitely purchase more goods if they don’t have to pay the extra cost of shipping. The most possible explanation for this is that if they have to pay for it, they feel like they have the losing end of the stick.

5 Ways to Offer Free Shipping for eCommerce Stores

Free shipping on orders over $X [order threshold]

Give free shipping if the shopper spends more than $X. This would help to increase average order prices and potentially raise profitability for some types of goods. 

Free Shipping When Consumers buy 2 + items [number of items]

This kind of free shipping would help to increase the average number of items per order. When shoppers add 1 item to their cart, prompt them with a message saying “Add one more thing to be eligible for free shipping.”

Things to Note & Check

# 1 Check free shipping deals using different coupons to help track efficiency

# 2 Make sure your shopping cart can enforce innovative shipping deals

# 3 Test flat-rate delivery on orders under $X

All orders free shipping

Simply gives free shipping on all orders is the best way. You need to measure the effect this would have on your bottom line before doing so. It makes sense to provide free shipping to products with large profit margins or fairly small sizes or products which don’t weigh much.

Free shipping to First-Time customers

You should only reach new customers instead of providing free shipping to all. You can do this by making a one-time use coupon inside your online store for new accounts. This is a huge opportunity to future shoppers who have never previously shop from your store.

Autoketing offers merchants Shipping Bar Master, offering a lot of automatic shipping campaigns to skyrocket your cart value.

Free Shipping When ordering Limited items [select products]

If you want to reduce the possible negative effect of free shipping on your total earnings, consider restricting it to specific items in your online store only. For example, you can rule out all over-sized items like furniture.

Conclusion

Offering free shipping can obviously be a perfect marketing tool for increasing sales and raising cart abandonment. But before you cut your shipping charges and hope for the best, take a look at the various ways free shipping can be delivered in a reliable, profitable way. Most small sellers combine optional, free shipping with tight cost controls for shipping to create a workable system.

There are other shopper-friendly ways of charging a shipping fee if free shipping doesn’t fit your profit model. But however you approach this, it is as important to be transparent in the shipping prices as the amount you charge. Post it prominently on your website if you charge for shipping so shoppers will not experience a sticker shock on the checkout page.

If you find this post interesting, find more articles at Autoketing.

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