Table of Contents

Introduction

In the dynamic world of ecommerce, shipping has become a pivotal factor in the customer's buying decision. The question of how much shipping will cost and when an order will arrive can make or break a sale. This guide will delve into the strategy of free shipping and its potential to increase sales, helping you navigate the ecommerce landscape in the current era. Customers not only expect free shipping but also super-fast delivery. According to a McKinsey report, over half of US consumers consider two to three-day delivery as the baseline, with some expecting same-day delivery.

The Importance of Free Shipping

Moreover, 80% of consumers expect free shipping when ordering a certain dollar amount of products, and 66% expect free shipping for all online orders. With shipping fees being a major reason for cart abandonment, offering free shipping can be a game-changer for your business.

Does Free Shipping Increase Sales?

Free shipping can indeed increase sales. Customers are more likely to buy more to qualify for free shipping and may take their business elsewhere if they can't get it. However, the way you offer free shipping needs to be strategic to ensure it benefits your business.

Types of Free Shipping

There are several ways to offer free shipping, each with its own benefits depending on your business goals and your customers' expectations. Here are eight options to consider:

  1. Build free shipping costs into pricing
  2. Offer free shipping at a certain spending threshold
  3. Free shipping for first-time customers
  4. Limited-time-only free shipping promos
  5. Location-based free shipping
  6. Free shipping on select items
  7. Incentivized free shipping
  8. In-store/local pickup or delivery

Customer Perception of Free Shipping

Customers love free shipping because they perceive it as getting more value. They would rather spend a little more to get an additional product than pay for shipping. This perception can be leveraged to increase sales by offering free shipping.

Free vs. Fast Shipping

While giants like Amazon promote "fast and free" shipping, it can be challenging for small businesses to offer both. However, a recent survey found that 85% of customers prefer free shipping to fast shipping when given a choice. Therefore, it might be more beneficial to offer standard free shipping first, then faster shipping for an additional cost.

Conclusion

Free shipping has become more of a necessity than a luxury in the eyes of customers. By strategically offering free shipping,