05/10/2022
E-commerce shoppers love free shipping. They love the simplicity of product only charges. Assuming you're not a huge store like Amazon, but you're selling via e-commerce, how do you implement free shipping and still profit on your sales? Shipping can be a sizeable amount, depending on what you sell. Free shipping isn't the right choice for every product. Some products cost as much to ship (truck freight items) as the product itself. Those are likely the wrong products to try and offer free shipping on. However, if you have products that you think are good candidates, test free shipping. It's critical to know your costs. Without good P & L reporting on each order, it can be difficult to determine if free shipping is better than charging shipping separately.
Free shipping can be implemented in ways that generate revenue. On-line shoppers often view shipping charges as a waste of money. Most would rather get products for their money. There are some good ways to offer free shipping and win. You may give free shipping only after a customer purchases a certain amount - (Free shipping over $99, for example). This method increases your average sale amount. Related to this is to offer a multiple products strategy to get free shipping (Buy 3 items to get free shipping). It can achieve a similar result.
Find the cheapest shipping methods and offer only those free. Maybe you can offer a Fedex Pak (Tyvek package) via 2 day, or maybe you offer a USPS shipping method free. You can always offer a free method along with others that are upcharged like Next Day, 2 Day, etc. Buyers typically want their items to show up quickly. Giving them faster options may be a huge win for an e-commerce company.
Offering free shipping at a specific time can generate sales when you're slow. Get creative and tie it in with a marketing theme for the month, or as an incentive on their next order within a time period.
Whatever strategy you decide to use, make sure your free shipping promotion is easy to see in your website header, in your shopping cart, and other relevant places.
If you would like to discuss e-commerce strategy, please contact us. We'd be happy to speak with you!