Usually, there are some questions that online business owners often ask. Should they offer free or discounted shipping for customers?
This question might be tiresome to online stores owner however it’s easy to answer with another question. For example, do you prefer an e-Commerce website that will offer you free or discounted shipping? Or from online stores that require you to pay shipping cost by yourself?
If you are the buyer, try to put yourself in the customer’s shoes. And the answer is, you will choose the free shipping often. We understand some are wary about giving discounts as costs might eat up their profit margin. However, if handled properly there’s nothing to be feared about. So here we give you the following tips.
1. Limit your free shipping into a usual delivery time frame. This actually means your package will arrive late comparing when your customer prefers to expedited by paid shipping. This often sacrifices for those customers who are willing to pay for the shipping fee.
2. Provide free shipping for minimum orders. The customers have been shown to happily add odds and ends merchandise to their shopping cart to meet the minimum order requirement. Once they have reached the order requirement, that’s the time you will ship their orders free shipping. Also, this will boost your sales with the least extra cost on your part.
Another good idea to save you on shipping costs is to choose products that have low shipping costs. You can select a free shipping guarantee only to those products that are small or those that are relatively low weight. There are kinds of variations in it – you can offer free shipping only for items that shipping cost is low and offer shipping discounts for the rest of the product. It is a win-win solution for everyone.
3. Allow free shipping based on proximity. When the home-based of your industry is located in the middle of the United States, try offering free shipping within that state. Offer a slightly increased fee for other mid-western states and somewhat higher fees in states that outside the Midwest.
4. Do not underestimate your customers’ loyalty. The best way to improve your marketing success is to have more loyal customers that patronizing your merchandise or services. You can return your customers by offering free shipping in order to keep them coming back for more.
5. Always measure your results. This method takes some dedication in accounting. Why? Because you may not want to involve in a situation where you are offering something that is hurting your business, right?
Let’s accept the idea that running an online store needs to be aware that free shipping simply costs the business. This is a necessary expense. For example, when you step inside the shopping mall, do you pay for entrance fees? No.
Keep in mind the reasons why we have mentioned it in here, how free shipping or discounted merchandise can increase your website conversion and online presence. Just follow these simple tips and change your mindset about free shipping as extra expenses. Try to think about it as one of your investment or marketing expenses.