![]()
It might sound oxymoronic to say that people would be willing to pay for “free” shipping, but Amazon Prime’s 142 million-strong American memberships says otherwise. #SQUARE PURSES WITHOUT CRAZY SHIPPING COSTS FREE#Members pay an annual membership fee ($119) in exchange for perks, most notably free super-fast shipping. If you’re not able to offer free shipping on every order, you can use the promise of free shipping as a carrot to get customers to subscribe to your email list, follow you on social media, or to join a loyalty program.Īmazon’s loyalty program-Amazon Prime-is perhaps the most powerful example of this. Free shipping builds brand recognition and customer loyalty #SQUARE PURSES WITHOUT CRAZY SHIPPING COSTS FOR FREE#In fact, 48% of consumers will add additional items to their carts to qualify for free shipping. If your customers are already in buying mode, free shipping makes it that much easier to rationalize making the purchase, or even adding extra items to their cart. Instead, it can be used as a tactic to push particular items, offload extra inventory, or increase AOV during sales events. ![]() You don’t necessarily have to offer year-round free shipping. One Harvard Business School study found that when shoppers are incentivized to hit a threshold for free shipping, they spend 9.4% more on average. #SQUARE PURSES WITHOUT CRAZY SHIPPING COSTS HOW TO#Skip ahead to our section below on how to calculate free shipping thresholds if you’re sold on why free shipping matters. But done right, absorbing this cost can have a huge pay-off in terms of increasing your AOV and overall profit margin-particularly if you set a minimum order threshold that customers need to reach in order to qualify for free shipping. ![]() If the customer doesn’t pay for delivery, you’ll have to. ![]() Simply put, there is no such thing as “free” shipping. Watch: The future of shipping, logistics, shipping forecasts & supply chain in 2022įree shipping may lead to increased orders and a higher average order value (AOV) This, however, comes with a word of caution: A 2020 study published in the Journal of Marketing Research found that free shipping combined with free returns promotions encouraged consumers to make “riskier purchases.” While this increased net sales volume, it resulted in higher reverse logistics costs and lost shipping revenue, “rendering these promotions unprofitable.” Not only do customers expect fast and free free shipping, they also look for brands who offer free return policies. In a 2019 survey of nearly 1,000 American online shoppers, 68% said they didn’t make a purchase at least half of the time when the retailer didn’t offer free shipping, and 22% abandon their carts as a result of “slow shipping.” Unexpected added costs-such as shipping fees-are frequently cited as one of the main reasons why shoppers abandon carts. And if it’s not offered? They’re happy to walk away. According to a National Retail Federation (NRF) study, 75% of consumers expect delivery to be free even on orders under $50. The result is that customers now expect free shipping. This number is even higher for brands selling their products on Shopify in 2020, 75% had free shipping enabled on their stores. Of the brands in Internet Retailer’s 2019 Top 1,000, more than 65% offered free shipping on at least some orders, while 17.5% offered free shipping on all products. Free shipping is now the norm, with the majority of online retailers promoting it. Once upon a time, free shipping was a competitive point of difference. Here’s why free shipping matters-and how to offer it without eating into your profit margins.Ĭustomers now expect free shipping-and free returns. According to Shopify’s research, 59% of consumers say that free delivery improves their online shopping experience-while 67% of those in the United States say that it’s “crucial” to their online shopping experience.įor fast-growing brands, free shipping is an opportunity to both reduce cart abandonment and improve conversion rates. Online consumers increasingly want and expect their shipping to be offered for free. ![]() The magic number they’re looking for? $0. It’s estimated that over 40% of consumers research delivery costs when shopping online. It might just feel like the last hurdle to get your products into the hands of your customers.īut for shoppers, shipping is one of the most important parts of the online shopping experience-it’s often what dictates whether they’ll make a purchase or abandon their cart.įor the last 15 years, research has continued to demonstrate that the cost of shipping remains one of the top factors influencing purchasing decisions, followed by return policies and shipping speed. Unless you're a bubble wrap enthusiast, chances are the topic of shipping doesn’t get you too excited. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |