How Offering Free Shipping Can Boost Your Online SalesIf you’re going to succeed online, then you’re going to have to offer free shipping in one form or another since free shipping is one of the most effective marketing tools being used online today to encourage consumers to buy. Just by placing the “Free Shipping” headline on each and every page of your website you can boost sales practically over night.
|
|
|
|
How Offering Free Shipping Can Boost Your Online Sales
|
|
|
Furthermore, offering free shipping encourages customers to order more products to their shopping cart than what they planned on purchasing in the first place.
More than 60% of online stores cite "free shipping" as their most successful marketing tool. And over 50% of customers abandoned online shopping carts after seeing the total cost with shipping fees included. Free shipping is one of the most successful marketing strategies that help customers complete the transaction. |
And if you fail to offer free shipping in one form or another then you risk the potential of losing sales daily. However, there is a catch. Free shipping may be free for your customers but someone has to pay for it. And more often than not, that someone is you, the business owner.
There may be circumstances where distributors may offer free ground shipping on large orders with multiple or high ticket items. However, for the most part, those free shipping costs are going to be deducted from your profit.
Therefore, if you’re going to offer free shipping then you’re going to have to offer the cheapest form of shipping available, such as UPS Ground shipping, which is also the standard for free shipping online.
2 to 3 day shipping services can cost anywhere from $15 to $25 or more while UPS Ground shipping can cost less than $10 and take only a couple of more days for the package to arrive at your customers location.
You’ll also need to make sure that you can afford to lose $10 from the profit of that product while still being able to make a profit, as little as it may be. But even a small profit is better than no profit at all. And a customer sold is a new customer gained.
There may be circumstances where distributors may offer free ground shipping on large orders with multiple or high ticket items. However, for the most part, those free shipping costs are going to be deducted from your profit.
Therefore, if you’re going to offer free shipping then you’re going to have to offer the cheapest form of shipping available, such as UPS Ground shipping, which is also the standard for free shipping online.
2 to 3 day shipping services can cost anywhere from $15 to $25 or more while UPS Ground shipping can cost less than $10 and take only a couple of more days for the package to arrive at your customers location.
You’ll also need to make sure that you can afford to lose $10 from the profit of that product while still being able to make a profit, as little as it may be. But even a small profit is better than no profit at all. And a customer sold is a new customer gained.
Start your online store with Volusion - Try it for free->
Types of free shipping offers
Although many online stores offer free shipping, many more stores offer free shipping with conditions as well.
Free shipping on every item: Depending on what type of products you sell, you may very well be able to offer free ground shipping on every item you sell without losing much of your profit, especially when you’re selling your products at high profit margins.
However there are certain products where offering free shipping may not be feasible and therefore may require you to limit your free shipping offer just as many retailers do online, especially for small ticket items.
Free shipping on almost every item: Free shipping on almost every item can become your policy if at least 70% of your products or more include free shipping.
Free shipping on selected items: You can also offer free shipping on selected items such as digital cameras for example yet charge for shipping on accessories such as travel chargers, camera cases etc…
Free shipping on every item: Depending on what type of products you sell, you may very well be able to offer free ground shipping on every item you sell without losing much of your profit, especially when you’re selling your products at high profit margins.
However there are certain products where offering free shipping may not be feasible and therefore may require you to limit your free shipping offer just as many retailers do online, especially for small ticket items.
Free shipping on almost every item: Free shipping on almost every item can become your policy if at least 70% of your products or more include free shipping.
Free shipping on selected items: You can also offer free shipping on selected items such as digital cameras for example yet charge for shipping on accessories such as travel chargers, camera cases etc…
There has to be enough profit margin on the sale of the product in order for you to be able to offer free shipping while still being able to make a profit.
You can however offer free shipping on both camera and carrying case when the customer buys both together and you’re able to get both items from the same distribution warehouse.
Free shipping for all orders placed online: If there’s enough profit margin for every item you sell then you can offer free shipping for every item when the items are ordered online.
This is also one of the best ways to get people to order online instead of calling you to order by phone. However, you need not worry as more customers tend to place their orders online than over the phone. And a notice for “free shipping for all orders placed online” will encourage them to do so.
You can however offer free shipping on both camera and carrying case when the customer buys both together and you’re able to get both items from the same distribution warehouse.
Free shipping for all orders placed online: If there’s enough profit margin for every item you sell then you can offer free shipping for every item when the items are ordered online.
This is also one of the best ways to get people to order online instead of calling you to order by phone. However, you need not worry as more customers tend to place their orders online than over the phone. And a notice for “free shipping for all orders placed online” will encourage them to do so.
Free shipping over $50: You can also offer free shipping on items over a certain dollar amount or when multiple items reach a set amount. For example, free shipping on all orders over $50.
If your niche market offers accessories for your products then this is the best time to up-sell your customers on those accessories by adding and offering those accessory items on that same product page.
If the customer sees that they have to buy one or two more items in order to meet your free shipping order rate then they’ll be more than happy to do so.
When customers order multiple products or high ticket items then the total price of the order is more than enough to cover the UPS Ground shipping fees without hurting your bottom line.
If your niche market offers accessories for your products then this is the best time to up-sell your customers on those accessories by adding and offering those accessory items on that same product page.
If the customer sees that they have to buy one or two more items in order to meet your free shipping order rate then they’ll be more than happy to do so.
When customers order multiple products or high ticket items then the total price of the order is more than enough to cover the UPS Ground shipping fees without hurting your bottom line.
Implementing free shipping
Implementing free shipping is as simple as adding the free shipping option in your shopping cart and assigning it a value of $0.00 and a time frame of anywhere from 4 to 6 business days. And you can add your shipping options from within the administration area of your shopping cart program.
Conclusion
Free shipping has become the way of the web. And in order to remain competitive, offering free shipping in one form or another is one of the best ways to do so.
Whether it be free shipping on all items, selected items, or items over $50, it’s important to offer free shipping as an incentive for customers to buy online and become repeat customers as well. And offering free shipping, can and will boost your online sales.
Whether it be free shipping on all items, selected items, or items over $50, it’s important to offer free shipping as an incentive for customers to buy online and become repeat customers as well. And offering free shipping, can and will boost your online sales.