Online retail has become one of the most competitive forms of retail, as most consumers have turned to the Internet for their needs and necessities. With so much competition out in the market, free shipping is just one way to differentiate yourself. Let’s explore the many benefits of offering free shipping as a business owner.
Differentiation
Differentiating yourself with free shipping is a great way to please customers with many growing expectations. Covering the cost of shipping is worth it for the convenience and ease your target consumers will feel when they’re placing their orders. There are so many options for consumers, so give them a reason to choose your company’s product over another.
Logic and Reason
It’s obvious that when asked, consumers would rather not pay than have to pay shipping. Free shipping increases order value. When consumers see their cart at checkout is 10 or 20 dollars less than it would normally be when paying shipping costs, they’re likely to go back to the site and keep shopping for one more thing.
Temporary Free Shipping
If you think offering free shipping across the board would be risky for your business, consider other shipping pricing options to still utilize the differentiation tactic. Consider offering free shipping for an extended period of time, or free shipping on orders over a certain amount.
Research
Analyzing your target market and exploring your options and means of shipping can be a great way to reduce shipping costs. Try to find the best combination of carriers and service levels for each package you send out. USPS rates are good for close shipments, and ground shipping may be less expensive from FedEx or other carriers. Research always helps.
Customer Retention
Free shipping has been directly linked to customer retention. When you offer good deals at a low cost, consumers naturally love this. When your business can afford it, free shipping is definitely something you want to consider offering.
If you have questions about your business’s e-commerce, reach out to us today. M&H Consulting, LLC offers professional IT consulting & support for small- and medium-size businesses in the Boston and surrounding New England areas. We are based in Natick, Massachusetts, and offer full-service technical support and development focused on all the technical needs of the small business.
Categorised in: Business Management, Business Transformation, Website