One cannot simply deny the significance that shipping discounts can have on e-commerce sales. Surveys and studies show that the higher shipping and handling fees is the most common reason for shopping cart abandonment.
So, first and foremost, you don’t want to lose a potential customer who is willing to buy but is not willing to pay for the transportation costs.
But wait, that’s not the only benefit; there are various other plus points free shipping comes with. If you are one not sure whether or not the free or discounted shipping is something you can afford to offer, this list of benefits is for you.
1- People are more interested to shop at a place which saves them some money and free shipping does so. According to the surveys; Free shipping is the top deciding factor for online buyers to choose a shopping website.
2- People are likely to spend the saved shipping on buying more items. Free shipping lets the buyer enjoy more products and you get your share of increased profit.
3- Free shipping stimulates word of mouth. Surveys report that 63% of buyers are likely to spread the word about website that offers free shipping.
4- Free shipping websites are more sought after and so the relevant publishers often discuss the new discoveries. With free shipping enabled, you will get positive reviews on shopping comparison websites, forums, directories and blogs.
5- Increases the Average Order Value: Free shipping minimum is a great way to increase the average order value. Besides that by offering free shipping on high margin or in-house brands also you can make more money per order.
6- Customers expect free shipping and if not found, they look for some other place.
7- Free shipping is the great way to lower the cart abandonment.
8- Free return shipping increases customers’ confidence and they are more likely to shop when they know there’s no risk. Some case studies have witnessed up to 357% increase in sale on offering free return shipping.
9- Free shipping helps small business brands build customer loyalty faster.
Summing up all the benefits mentioned above and taking notes from the researches and surveys, the benefits of free shipping can be summarized as follows:
- A common rationale to offer free shipping is that it immediately boosts online sales; so you get more orders and more profits within a short period of time.
- Free shipping also leads to larger orders; particularly when a minimum threshold is set.
- As a long term benefit, you will get some loyal customers, those who prefer only free shipping websites.
- At times; particularly when you are doing business in a highly competitive industry, free shipping may be necessary to simply remain competitive in the marketplace.
So, if any of the above is your concern, you must start offering free shipping. It’s not a value added service, but a common standard in today’s marketplace.