How Much Does Free Shipping Increase Sales: Ultimate eCommerce Guide

Free shipping. The two magic words that can turn a tentative cart into a profitable one. Several studies say that 90% of online shoppers say that free shipping is the top incentive that would make them more likely to shop online. Think of how many times you’ve heard people around you increase items in a cart just to get rid of the shipping charges. But when you’re running a business, it’s important to know: how much does waiving a shipping fee actually increase sales? And by how much can a free shipping offer actually increase your profits?

That’s where shipping platforms like Easyship come in. With access to exclusive, pre-negotiated shipping rates and over 550+ courier options, Easyship helps you offer free or discounted shipping without cutting into your margins. By showing real-time, cost-effective shipping options at checkout, you can give your customers the “magic words” they’re looking for while staying profitable and competitive.

That said, navigating the offer of free shipping to widen profit margins is a complicated idea. Read on to find out how you can increase sales by providing free shipping.

Introduction to Free Shipping in eCommerce

Understanding the Popularity of Free Shipping

Free shipping has become a staple in eCommerce, attracting customers who value the convenience and cost savings it provides. By eliminating shipping costs, online stores lower a key purchasing barrier that often causes cart abandonment. As studies show, most consumers expect fast and free shipping as part of a seamless shopping experience, and tools like Easyship enable businesses to meet these expectations affordably with pre-negotiated rates and smart shipping solutions.

Why Free Shipping is a Game-Changer for eCommerce Brands

Offering free shipping is more than just a marketing tactic; it’s a powerful way to increase sales conversions and build a loyal customer base. When shoppers encounter free shipping, they’re more likely to complete their purchase, which directly impacts conversion rates and sales growth. In fact, free shipping increases sales by boosting order volume and conversion rates, as a significant percentage of shoppers prefer free shipping over paid options. In a highly competitive eCommerce market, free shipping can differentiate a brand, making it a go-to choice for consumers who prioritize savings and convenience.

How Free Shipping Can Increase Customer Satisfaction and Conversions

For many shoppers, the added cost of shipping is a dealbreaker. Incorporating free shipping costs into product pricing can enhance customer appeal by making the offer more attractive. By offering free shipping, brands not only simplify the purchase process but also boost customer satisfaction by adding value. When customers feel they’re getting more for their money, they’re more likely to complete their purchase and return for future shopping. With Easyship’s real-time shipping rates and cost-effective solutions, businesses can offer free shipping without sacrificing profitability, making it easier to reduce cart abandonment and build customer loyalty.

Key Benefits of Offering Free Shipping

Free shipping is one of those terms that immediately evoke a positive response. Here’s a look at some of the more tangible benefits of this particular offering:

3 Factors Influencing Customer Behavior with Free Shipping

The Power of Perceived Value and Psychological Impacts

The psychological appeal of “free” cannot be understated; free shipping provides a perception of added value, making customers more likely to buy. High shipping fees can lead to abandoned carts and lost sales, as customers often balk at unexpected costs. Rather than seeing an additional cost, shoppers view their entire purchase as a better deal, increasing purchase completion rates. This sense of value plays a significant role in customer decision-making and can be leveraged by brands to reduce cart abandonment and drive more completed sales.

Customer Preferences and Expectations

Today’s eCommerce customers expect fast, affordable, and reliable shipping. With big players like Amazon setting the standard, shoppers increasingly look for brands that offer both speed and savings. Businesses that understand these customer preferences and adapt their shipping strategies to meet them—like offering free, standard, or express shipping—can capture customer attention and build lasting loyalty in a competitive market. Easyship’s multi-carrier comparison tool ensures businesses can offer these options cost-effectively, enhancing customer experience while managing costs.

Managing Potential Drawbacks of Free Shipping

While free shipping is attractive, it can impact profit margins, especially for small businesses. A free shipping minimum serves as a strategic threshold to incentivize customers to increase their order value. To prevent profit erosion, brands can set minimum order values or limit free shipping to specific items. Analyzing customer purchase patterns and testing different thresholds can help brands find the right balance between meeting customer expectations and protecting their bottom line, making free shipping a sustainable advantage.

3 Strategies for Implementing Free Shipping Profitably

Set a Minimum Order Threshold

• Calculate your average order value (AOV) or median order value (MOV) and set a free shipping threshold slightly above it to encourage customers to increase their cart size.
• Use Easyship's shipping automation rules to implement and manage these thresholds seamlessly.

Adjust Product Pricing to Cover Shipping Costs

• Increase product prices slightly to account for shipping expenses without compromising profitability.
• Use Easyship’s shipping cost calculator to determine average shipping costs per product and adjust pricing effectively.

Limit Free Shipping by Location or Product

• Offer free shipping selectively for lightweight or high-margin products, or restrict it to certain regions to minimize costs.
• Leverage Easyship’s multi-carrier comparison tool to find the most cost-effective couriers for specific locations or products.

By using these strategies alongside Easyship’s tools, businesses can balance customer expectations with profitability and implement free shipping successfully.

Tracking the Impact of Free Shipping on Sales

Key Metrics to Track for Free Shipping Success

To measure the impact of free shipping, brands should monitor metrics like conversion rate, average order value (AOV), and customer retention rates. These indicators provide insight into how free shipping affects overall sales performance. Analyzing these data points over time allows brands to make data-driven adjustments, optimizing their free shipping strategy for maximum impact on revenue and customer loyalty.

Using A/B Testing to Refine Free Shipping Offers

A/B testing is a valuable tool for refining free shipping offers by comparing different promotions to see which drives better results. Brands can test various free shipping thresholds, product restrictions, or time-limited offers to find the most effective approach. Segmenting customers for tailored offers can also help brands understand which free shipping strategies resonate best, enhancing customer satisfaction and profitability.

Is Free Shipping Right for Your Business?

Free shipping can be a powerful growth tool when implemented strategically, but it’s essential to balance customer expectations with profit margins. Instead of offering it across the board, businesses can test approaches like minimum order thresholds, loyalty-based offers, or promotional periods to stay profitable. 

Tools like Easyship make it easy to automate and manage these strategies, helping brands increase customer satisfaction and loyalty without compromising financial health. Over time, this approach can strengthen brand image, drive repeat purchases, and boost market share.

Ready to simplify and save on shipping?
Easyship is here to help.

Easyship was built to simplify shipping for eCommerce sellers of every size. If you’re looking for ways to save on shipping costs, compare rates, automate fulfillment, or grow internationally—our free shipping tools and smart dashboard can save you hours daily.

Our most popular App features:

Discounted Shipping Rates: Get instant access to the largest selection of pre-negotiated volume discounts on shipping labels (up to 91% off retail rates).

• Multi-Carrier Comparison: Effortlessly compare 550+ global courier services to find the best option with our intelligent courier selection algorithm.
• Simple Set-Up & Integration: Connect your store and sales channels to Easyship in minutes to automatically sync orders and manage all shipments in one dashboard.
• Instant Rates At Checkout: Increase conversions by showcasing the cheapest, fastest and best value shipping rates live at checkout.
• Automatic Tax & Duties: Calculate, pre-pay, or pass on all tax and duty obligations for international orders, including generating all relevant customs paperwork.
• Shipping Automation Rules: Streamline shipping workflows, bulk print labels and reduce manual pick and pack errors with simple automation rules.
• Branded Tracking & Returns: Deliver a superior customer experience from checkout to delivery with branded tracking updates, delivery status, and pre-paid return labels.
• Shipping Insurance: Protect your brand and reputation from parcel theft, loss, or damage with affordable insurance options for domestic and international shipments.
  
  

More free shipping tools:

• Shipping Rate Calculator: Compare and calculate the cheapest way to ship anything to anywhere with our shipping cost calculator for international and domestic.
• Tax & Duties Calculator: Create an estimate of your customs duties and import taxes for every country and retail category.
• Country Import Rules: Understand the individual import rules, requirements, and restrictions for every country with our helpful guides.
• HS Code Lookup Tool: Search for the correct HS/HST Code for international orders with our universal HS Code Lookup Tool.
• Shipping Policy Generator: A clear and enticing shipping policy is a sales tool for stores, setting clear expectations and building trust with prospective customers.
  
  

Join our community of eCommerce sellers and get started with Easyship for free today.

FAQs on Free Shipping

How does offering free shipping impact my profit margins?

Free shipping can reduce profit margins if not managed strategically. Tools like Easyship help offset this by providing access to discounted shipping rates and automation features that lower operational costs, enabling you to offer free shipping without sacrificing profitability.

Can I use Easyship to set up free shipping thresholds for my store?

Yes! Easyship allows you to set up shipping automation rules and integrate real-time rates at checkout. You can easily establish minimum order thresholds for free shipping, encouraging customers to increase their cart value while staying profitable.

Does Easyship support international shipping with free shipping offers?

Absolutely. Easyship provides features like a shipping cost calculator, tax and duties automation, and access to global couriers, making it easy to offer free or discounted international shipping while managing costs effectively.

What are some ways to offer free shipping without losing money?

You can increase product prices slightly to cover shipping costs, set minimum order thresholds, or offer free shipping on specific items or during limited-time promotions. Easyship’s rate comparison and automation tools help you find the most cost-effective ways to implement these strategies.

How can Easyship help me reduce cart abandonment related to shipping costs?

Easyship allows you to display real-time, discounted shipping rates at checkout, giving customers transparent and affordable options. By offering free or value-driven shipping solutions, you can address one of the biggest reasons for cart abandonment and boost conversions.