The Basics of Free Shipping
While it’s pretty self-explanatory in nature, free shipping is when online orders are shipped for no additional fee as opposed to charging a few dollars. As for why this is done, it’s not entirely done out of goodwill, although that can be a factor for some eCommerce business owners. Free shipping is actually a marketing technique that can drive sales and discourage checkout abandonment. Shown to increase revenue anywhere between 10 and 90% depending on who you consult, it can have a fantastic payoff in the end despite the greater upfront associated costs, but it greatly depends on the type of free shipping offered, site traffic, product popularity, the buyer’s intentions, and the prices of both products and shipping on your end.
The success relies on all of these factors. For example, any customers that aren’t quite at the end stages of the buyer cycle, will likely not be convinced just by the promise of free shipping. They need to already have the need and interest in your product. Free shipping can’t generate this; rather, it can just encourage them to follow through with the purchase they want. Similarly, pricing that is too expensive, an interest that isn’t strong enough, too little traffic, and more can all decrease the effectiveness of free shipping as a selling tactic.
How It Can Make Sense for eCommerce
So, free shipping can obviously work if all the proper pieces are aligned. We know this. How are you supposed to get there, though? How can you ensure free shipping makes sense for you? Here are a few tips that should be able to help you out.