Free Shipping: 5 Tips to Make It Work

Virginia Miller
Virginia Miller
July 21, 2024
In this article

If you're like most business owners, you're always looking for ways to give your customers a little extra incentive to buy from you. And what could be better than free shipping? Offering free shipping is a great way to show your customers that you value their satisfaction and time. It also helps set you apart from the competition. But before you start offering free shipping, there are a few things you should know. In this blog post, we'll discuss what free shipping is, how it works, and the pros and cons of offering it. We'll also give you some tips on how to make the most of this valuable marketing tool. So read on to learn more about free shipping and see if it's right for your business!

What is Free Shipping and Why Do Businesses Offer It?

Free shipping is when online orders are shipped to customers at no additional cost. It's a common sales tactic used by many ecommerce businesses to encourage more sales. There are several reasons why free shipping can benefit both businesses and shoppers.

Benefits for Businesses

Offering free shipping can help businesses in several ways:

  • Increases average order value as customers add more items to get free shipping
  • Builds loyalty and repeat purchases from customers who love free shipping
  • Saves on shipping costs for larger orders that qualify for free shipping
  • Attracts new customers with a compelling offer

Benefits for Customers

Customers also enjoy several perks from free shipping offers:

  • Saves money on shipping costs
  • Incentive to buy more from the same store
  • Convenience of direct-to-door delivery with no trip to the post office

Implementing Free Shipping for Your Business

While offering free shipping comes with some costs, the potential sales boost is significant. Here are some tips on how to offer free shipping successfully:

Set a Reasonable Order Minimum

Require a minimum order value to qualify, such as $50. This ensures order values are high enough to offset shipping costs.

Offer Free Economy Shipping

Paying for faster shipping methods can get very expensive. Offer free on your lowest cost shipping option.

Highlight the Offer Prominently

Feature free shipping prominently in product listings, shopping cart, website banners to maximize visibility.

Track Results and Optimize

Use analytics to see how your free shipping offer is performing over time. Adjust order minimums or product pricing as needed. Adding free shipping can take some trial and error to perfect, but often leads to significant revenue and order volume gains.

Conclusion

So, is free shipping right for your business? The answer to that question depends on a number of factors, including the products you sell and the size of your customer base. But if you're looking for a way to set yourself apart from the competition and give your customers an extra incentive to buy from you, free shipping may be just what you need. And if you're not sure how to get started, don't worry. We can help! Contact us today to learn more about our eCommerce fulfillment services and how we can help you take your business to the next level.

Next article: You're Probably Overspending on Shipping - Let's Change That

FAQs

What are the main benefits of free shipping?

The main benefits are increased average order value, greater customer loyalty and repeat purchases, new customer acquisition, and cost savings on shipping for larger orders.

What should my free shipping order minimum be?

A good minimum is $50. This ensures order values are high enough to offset the costs of shipping. You can experiment with minimums between $35-$75.

Should I offer free expedited shipping too?

No, free economy/ground shipping is recommended. Paying for faster shipping can get very expensive for businesses to absorb. Focus free shipping on your lowest cost shipping method.

How prominently should I display the offer?

Highlight it prominently in multiple places like product listings, shopping cart, banners, and popups. Maximizing visibility helps drive more orders.

Can free shipping increase my average order value?

Yes, customers are likely to add more items to their carts to qualify for free shipping minimums. Just one extra item per order can boost order values.

Does free shipping bring in new customers?

It can be an effective acquisition strategy. The offer catches shoppers' attention and gives them an incentive to try out a new ecommerce store.

Should I do free shipping year-round or just for promotions?

Year-round free shipping generally performs best, as it builds long-term shopping habits. But limited-time free shipping promotions can also be very effective.