• Offering free shipping attracts customers, increases their purchase amount, and boosts brand loyalty.
• Implement free shipping strategically using methods like minimum order thresholds, limited-time promotions, and optimized product selection.
• Connect your store with Easyship to instantly access discounted shipping rates and automate your shipping operations. Boost customer satisfaction and conversions today

In the competitive world of eCommerce, online shoppers prioritize free shipping offers above all else. A September 2023 study by Statista confirms this, ranking free shipping as the most crucial factor for online purchases, followed by fast delivery and shipment tracking. 

While consumers expect free shipping, it can be a crucial eCommerce tool, boosting conversion rates and average order value (AOV). But for growing online stores, offering customers free shipping without compromising profitability can be a challenge.

This quick guide explores the benefits of free shipping and key strategies to profitably offer free shipping on your online store. Plus, find out how to reduce shipping costs with Easyship today, boosting customer satisfaction and sales.

Why Offer Free Shipping?

Free shipping isn't just a marketing gimmick; it's a strategic weapon in your eCommerce arsenal, offering a multitude of benefits that go beyond simply attracting customers. Let's explore deeper into the effectiveness of a free shipping strategy and the positive impact it can have on your business:

Increase Conversions:

• Reduced Cart Abandonment: cart abandonment often occurs when unexpected shipping costs pop up at checkout. If you provide free shipping, this barrier is eliminated
• Psychological Appeal: Customers perceive free shipping as an added value, making them more likely to complete the purchase when they shop online. It removes the feeling of paying extra for something they expect, fostering a sense of satisfaction and trust
• Decision-Making Simplicity: With free shipping, the final purchase price becomes clear upfront, making it easier for customers to make buying decisions. For budget-conscious shoppers, free shipping increase sales

Boost Average Order Value (AOV):

• Encourages "Add-Ons": To qualify for free shipping, customers often add more items to their cart, leading to a higher AOV. A minimum order value translates to increased revenue per order, businesses offer free shipping to boost the bottom line
• Upsells and Cross-sells: Free shipping can be a strategic tool for upselling and cross-selling, encouraging online shoppers to purchase higher-value items or complementary products to reach the free shipping threshold.

Brand Perception & Customer Loyalty:

• Enhanced Brand Image: Offering free shipping is perceived as a customer-centric approach, enhancing your brand image and positioning you as a generous and competitive business
• Customer Satisfaction Boost: Providing free shipping fosters positive customer experiences, leading to increased satisfaction and loyalty. Satisfied customers who receive free shipping are more likely to return for future purchases and recommend you to others
• Repeat Business & Advocacy: By exceeding customer expectations and offering a seamless shopping experience, free shipping can turn one-time buyers into loyal brand advocates who drive repeat business and positive word-of-mouth marketing

Competitive Edge & Market Share:

• Stand Out from the Crowd: In a crowded e-commerce landscape, keeping shipping costs low with free shipping can be a powerful differentiator, attracting price-conscious customers and giving you a competitive edge over businesses with hidden shipping costs.
• Market Share Growth: By offering free shipping strategically, you can tap into new customer segments and expand your market share, driving sustainable business growth.

Remember: The power of free shipping lies in its strategic implementation. Utilize the various strategies mentioned earlier to ensure it aligns with your business goals, target audience, and profit margins. By leveraging the right approach and partnering with Easyship, you can unlock the true potential of free shipping and watch your business soar to new heights!

How to Offer Free Shipping on Your Store?

Free shipping is a powerful tool, but deploying it strategically ensures it doesn't become a profit drain. Check out some key methods to offer customers free shipping:

Free Shipping Thresholds:

• Minimum Order Threshold (MOT): This classic approach to eCommerce free shipping encourages customers to spend more to qualify. Set the threshold based on your average order value (AOV) and profit margins
• Tiered Thresholds: Take it a step further by offering different levels of free shipping on your online store, based on spending amounts. For example, free 2-day shipping on orders above $100, and free ground shipping above $50. This incentivizes higher spending while maintaining profitability.

Time-Bound Promotions:

• Flash Sales: Offer free shipping for a limited period (e.g., next 24 hours) to create a sense of urgency and drive impulsive purchases
• Seasonal Promotions: Leverage holidays or special events to offer free shipping and boost sales during slow periods
• Limited Edition Offers: Create exclusive product bundles with free shipping to attract new customers and clear inventory

Strategic Product Selection:

• Free Shipping on High-Margin Items: Choose products with high-profit margins where you can absorb the free shipping cost easily. This attracts customers to these items while maintaining your overall profitability
• Free Shipping on Bulky or Heavy Items: Offset the higher shipping cost of these items by offering free shipping, making them more attractive to purchase

Pricing & Profitability:

• Cost-Absorbing Price Increase: Slightly raise product prices across the board to absorb shipping costs and not start losing money. Ensure the price increase remains competitive and transparently communicate the benefit of free shipping.
• Freemium Model: Offer basic free shipping with longer delivery times and paid options for faster delivery. This caters to diverse customer preferences and generates revenue from those willing to pay for faster options.

Leverage Technology & Partnerships:

• Easyship Platform: Utilize Easyship's negotiated rates, flat rate shipping, discounted shipping fees, and automated workflows to minimize costs and streamline operations. Lower shipping costs allow you to offer free shipping more effectively while maintaining profitability
• Carrier Partnerships: Negotiate volume-based discounts with preferred carriers to reduce shipping costs further and make free standard shipping more viable

Additional Considerations:

• Free Shipping Transparency: Clearly communicate the terms and conditions of your free shipping offer (e.g., minimum order threshold, delivery timeframe)
• Mix and Match: Combine different strategies based on your business goals and target audience. Test and analyze the results to see what works best for you
• Focus on Value: Don't just offer free shipping; highlight the value it brings to customers, like convenience and peace of mind

Remember: Free shipping is not a one-size-fits-all solution. By understanding your average shipping cost and strategically implementing these tactics with Easyship as your partner, you can unlock the power of free shipping and fuel sustainable growth for your business.

Offering Free Shipping? Reduce Shipping Costs with Easyship

Easyship is the top shipping and logistics company working with a network of over 250 couriers worldwide. This has put us in a position to negotiate some of the best-discounted shipping rates with leading couriers, and we can help you reduce your shipping expenses by up to 91%.

Some of our major discounts include the following:

We also offer a range of easy-to-use shipping tools, to help streamline your shipping experience and delight your buyers. Popular features include:

• Comparison Tool: With our courier comparison tool, you can compare the different shipping services offered by each courier, allowing you to choose your cheapest way to ship based on other factors, not just the cost
• Insurance: To help keep your packages safe in transit, Easyship offers you insurance up to $10000
• Tracking: From custom-branded tracking emails to automatic message alerts, Easyship helps you maintain package visibility with your buyers throughout the delivery process
• Shipping Rate Calculator: You can use our shipping rate calculator to compare shipping rates from different carriers