Free shipping is one of the most popular incentives for online shoppers and a key component to building brand loyalty. But offering free shipping comes with a price, and it can be challenging to know how to best leverage this incentive to drive growth for your business. In this article, we’ll explore why customers want free shipping, how to implement conditional and unconditional free shipping strategies, and some tips for optimizing costs to keep free shipping viable for your business.
For many e-commerce retailers, the main barrier to providing free shipping is the initial cost. But if you can successfully re-target cart abandoners with the promise of free delivery, you’ll find that a lot of people are willing to return to their abandoned shopping carts to take advantage of this offer. And for a small cost, you can quickly turn an abandoned cart into a sale and boost your revenue.Looking More 免运费
But beware of implementing a blanket free shipping policy because this may lead to a major drop in your average order value (AOV). To prevent this, you should only consider offering free shipping for the products that make sense for your business’s logistical constraints. Ensure that you have enough profit margin on each product to cover the shipping costs and use geo-targeting rules in Justuno to show this promotion only to those who qualify for it, such as those near your warehouse or brick-and-mortar locations.
When offering free shipping, be sure to communicate the terms and conditions clearly on your website. Otherwise, you risk losing customers. In fact, a 2022 Baymard study found that the primary reason for cart abandonment was extra costs like shipping and taxes, so it’s important to inform customers about any additional fees upfront to avoid any surprises.
In addition to reducing cart abandonment, implementing a free shipping incentive can encourage shoppers to add more items to their carts and increase your AOV. For example, you can run a promo code in your email newsletter or social media to offer free shipping on the first order for new customers. Or you can set a minimum order amount that includes your bestselling products to qualify for free shipping.
Another way to offer free shipping is by creating product bundles or kits that combine multiple items into a single package. This is a great strategy for businesses that offer both online and in-store fulfillment, as it can help reduce overall shipping costs by minimizing the number of individual orders to process.
By leveraging the right promotional tools and strategies, you can successfully introduce free shipping to your customer base this holiday season. By using an inventory management and shipping automation system, you can also save time and resources by automating your ordering and processing. If you’re ready to grow your e-commerce business with free shipping, contact us to learn how Justuno can help you get started!
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