Free shipping can be a powerful tool for gaining and keeping consumers, boosting revenue, and expanding your online store. If not done properly, it can also be pricey and affect your financial situation. Create a strategy that takes into account aspects like delivery costs, product prices, and client expectations if you want to offer free shipping without affecting your OneShip Ecommerce. We’ll look at some advice in this article on how to provide free shipping without damaging your eCommerce business. You may offer free delivery, draw in and keep consumers, boost sales, and expand your eCommerce business by putting these methods into practice without compromising your bottom line.
1. Offer Free Shipping with Minimum Purchase
Offering free ecommerce international shipping with a minimum purchase amount is a popular strategy that allows eCommerce businesses to provide free shipping while still ensuring that their shipping costs are covered. This approach encourages customers to purchase more items to meet the minimum threshold for free shipping, which can increase the average order value and boost revenue. Additionally, setting a minimum purchase amount for free shipping can also help reduce the likelihood of abandoned carts, as customers are motivated to spend more to avoid paying for shipping.
When deciding on a minimum purchase amount for free shipping, it’s important to consider your profit margins and shipping costs. You’ll want to ensure that the minimum purchase amount is high enough to cover your shipping costs while still offering an attractive value proposition to your customers. Experimenting with different minimum purchase amounts can help you determine the ideal threshold that provides value to customers while also minimising your shipping expenses.
Overall, offering free shipping with a minimum purchase amount is an effective strategy that can increase sales, improve customer satisfaction, and minimise the impact of shipping costs on your bottom line.
2. Adjust Product Prices
Another tactic eCommerce companies can take to provide free shipping without damaging their bottom line is to adjust the prices of their products. By include the cost of shipping in the price of the item, a strategy known as price bundling is used.
Let’s say, for illustration purposes, that you charge $5 for shipping on a $20 item. You might increase the price of the goods to $25 and provide free shipping, as opposed to charging clients $25 and providing free shipping. Customers will think they are getting a good deal with free delivery this way, and you can pay for freight without having to reduce your profit margins.
It’s crucial to take into account both your competition and the perceived value of your products when modifying your product prices. Even with the benefit of free shipping, buyers could be less likely to buy from you if your prices are much higher than those of your rivals. As a result, it’s crucial to give serious thought to your product price plan and make sure it’s in line with your target market.
Overall, adding the cost of delivery to your product prices might be a good approach to offer free shipping without affecting your bottom line. This strategy can help you maximise your conversion rates, clients’ satisfaction levels, and eventually earnings.
3. Negotiate Shipping Rates with Carriers
Another tactic eCommerce companies can employ to offer free shipping without affecting their bottom line is to bargain shipping prices with carriers. For eCommerce companies, especially those who ship a lot, carriers are frequently open to negotiating rates.
It’s crucial to take your shipping volume and the services you need into account when negotiating shipping charges. You might be able to negotiate a reduced charge per package, for instance, if you ship a lot of packages. Also, carriers could give inexpensive extra services like expedited shipping or package tracking, which can benefit your customers and boost sales.
4. Limit Free Shipping to Certain Products or Locations
Another smart tactic eCommerce companies may employ to provide free shipping without affecting their bottom line is to restrict the free shipping to specific items or places. Instead than providing free shipping for all products, this strategy offers it for certain products or to clients in certain places.
You may lessen the effect of delivery expenses while still providing your clients with an alluring value proposition by restricting free shipping to specific items or places. For instance, you might provide free shipping for your best-selling items or to clients in a particular area. By using this strategy, you can still provide a useful service that can boost sales and customer loyalty while focusing on your most lucrative items and consumer categories.
5. Utilise Third-Party Fulfillment Services
Using third-party fulfillment services is another approach that eCommerce retailers may employ to offer free shipping without affecting their bottom line. By offering reduced shipping rates, enhancing shipment routes, and offering other shipping-related services, third-party fulfillment services can assist in controlling your shipping expenses.
Working together with a third-party fulfillment provider allows you to benefit from their knowledge and experience in shipping operations. Because of their higher shipping volumes, some firms may offer cheaper shipping rates, which can assist lower your overall shipping costs. Also, they can aid in shipping route optimisation, which can shorten shipping times and increase customer satisfaction.
In conclusion, providing free delivery is a great approach to draw clients and boost sales for your online store. If not done properly, it can also be pricey and affect your financial situation. You can provide free shipping without incurring a loss in revenue due to shipping costs by establishing minimum purchase requirements, modifying product prices, negotiating shipping rates with carriers, restricting free shipping to specific items or locations, and using third-party fulfillment services. You can expand your eCommerce business, attract and keep clients, and increase revenue by putting these techniques in place.