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The Effect of Offering Free Shipping on Marketing

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So allow me to take you on a trip down memory lane.

Consider the previous three months and envision every online order you made. Can you recollect everything?

How many of the orders were influenced by the phrase "free shipping"?

One or two? Three? Is it all of the time?

If you're like the majority of internet buyers, you're constantly looking for a good deal. A deal might be a discount, free shipment, or any other inducement that justifies your purchase.

In one of our research, 9 out of 10 online customers acknowledged that an item's 'free shipping' tag always influenced their purchasing choice.

Many merchants would want to give free delivery to their consumers, but they simply cannot afford to.

In this post, I explain what free shipping is, the different types of free shipping, how to set up conditional or unconditional free shipping on your website, how to cut shipping costs, and the impact of free shipping on your business.

Let's get this party started.

What Exactly Is Free Shipping?

Free shipping is a marketing strategy used by online stores to avoid charging customers and shoppers an additional fee when placing orders for specific items.

Getting no additional cost to an item purchased from a website simplifies shopping for the online shopper.

What are the types of free shipping

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There are two forms of free delivery as a marketing strategy: conditional free shipping and unconditional free shipping.

In the following parts, we'll look at what each free shipping model stands for and how to implement it in your online business.

Free shipping is conditional.

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Offering free delivery on all items on your website is a good idea. What client wouldn't want that?

However, in terms of unit economics, it is not the most profitable approach, particularly for small enterprises. This is why conditional free shipping exists.

When you offer conditional free shipping, you are offering to ship ordered items for free if your customers meet certain purchase criteria. The criteria to be met are the reason why shipping is conditional.

Conditional free shipping enables you to provide appealing shipping offers to your customers and prospective customers while still profitably completing each order.

There are several ways to implement conditional shipping in your online store, some of which have a direct impact on average order value, which is good for increasing sales and revenue.

How to Set Up Conditional Free Shipping Offers in Your Store

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Establish a bare minimum: To make this work, you must establish a minimum order with a high-value threshold that covers shipping costs and product price while ensuring profitability on each order.

Slapping any amount and claiming it as your minimum order threshold to qualify for free shipping is how you bleed your business's profit.

Here's a formula for calculating the free shipping threshold. You'll need to use some of your store metrics.

Certain goods qualify for free shipping:

This goes without saying. Customers receive free delivery when they order a certain product. You should do this for things that have a large profit margin and can pay shipping costs without cutting into your earnings.

To sweeten the deal, you could include some low-cost items. Customers and prospective customers will not be misled into thinking you're pressuring them to buy expensive items when other products aren't as important.

Free delivery during specific seasons:

Historically, the holiday season has been a sales hotspot—holidays such as Black Friday and Cyber Monday, Valentine's Day, Labor Day, and so on.

To make this conditional free shipping model work for your business, free shipping as a marketing strategy does not have to be something your company is known for; if you already offer free shipping, discontinue it prior to a major shopping holiday.

This way, you can promote free shipping, raise customer expectations, and boost sales.

Paid membership schemes:

Amazon Prime is an excellent illustration of what works in this situation. When paid members pay membership fees to be in your inner circle, you can offer free shipping on all items or select items.

Free Shipping Without Conditions

In this case, also known as unlimited free shipping, every item in your store ships for free. If done correctly, this shipping strategy can provide you with a competitive advantage, especially in these days when large retail companies like Amazon offer free shipping on millions of items.

There are two ways to make this happen for your business, even if you’re just starting out.

Final Thoughts

Many internet buyers anticipate free delivery, and it would be amazing if you could provide that.

You are not required to begin with the unconditional free shipping model, which requires you to sell every item with a free shipping tag. Begin with the conditional free shipping model to encourage customers to take advantage of your shipping offer.

This way, both the customer and your company benefit.