For the holiday season, they offer free shipping on all orders. Since many of the items on their online store are expensive they likely have high margins and can afford to offer free shipping.
They may also do this to boost sales during the holiday season and return to paid shipping the rest of the year, using it as a marketing tool. ASOS offers conditional free shipping. This likely helps reduce shipping costs as shipping internationally usually costs more than shipping within your own country when you carry inventory.
Ralph Lauren offers free shipping when customers use a discount code. Also, they take it up a notch by offering free gift boxes during the holiday season to customers which is a nice little bonus. Disney offers promotional free shipping to customers.
With a special discount code, customers can occasionally get free shipping on any product. They use it as a marketing tool. However, the easiest way to find out if free shipping or conditional free shipping works best on your store is to try one condition for a couple weeks and compare it to another condition shortly after. For example, you offer free shipping on all products and run an experiment until you reach customers. Should you offer free shipping on your store? Let us know what has worked best for you in the comments below!
Want to learn how to advertise on Instagram? You might not know what to…. Oberlo uses cookies to provide necessary site functionality and improve your experience. By using our website, you agree to our privacy policy. Although it is not clear that free shipping offers help retain customers, many marketers believe that there is a relationship between customer retention or customer loyalty and offering free shipping. For example, the comScore and UPS study mentioned earlier found that 54 percent of shoppers are likely to take action when they receive a free shipping offer by email.
This implies a couple of things. First, it would seem that free shipping is a more compelling offer than a sale price since emails offering product discounts rarely have a 54 percent conversion rate. Second, since consumers receiving emails presumably have a relationship with the online seller, one can assume a level of loyalty or at least familiarity.
Many online sellers will argue that they do not need to offer free shipping or that free shipping is simply too expensive. But some of these perceived problems with free shipping offers may really be a result of the way we think about free shipping. Just as a brick-and-mortar store incorporates the cost of sales assistants and store lease into their item price, so to can an online business incorporate the shipping cost into their product prices.
For example, few online retailers pass the cost of packing materials to customers. Nor do many businesses charge shoppers on a prorated basis for website hosting, payment card processing, or myriad other overhead expenses. Similarly, many online sellers are very happy to offer shoppers , , or even percent discounts on products in the form of sale prices and coupon code offers, only to be reluctant to offer free shipping.
The problem may be that one needs to think about free shipping offers like overhead or advertising, rather than a extra cost. This in-depth guide covers the ins-and-outs of crafting the perfect remarketing email.
Download it today and start writing awesome emails that convert. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Why Is Free Shipping Important? The Psychology of Free Shipping 1. Shoppers Value Convenience Online shoppers love convenience and we often get what we want. The Benefits of Free Shipping 1.
Boosts Average Order Value Offering delivery free of charge is a great way to tap into the concept of free. Take a look at this example:. Leave a Reply Cancel reply Your email address will not be published. Lead Capture. Email Remarketing. Targeted Tactics. Sales Chat. Ecommerce Expertise. Email Resources. Case Studies.
White Papers. Adding in free, rapid delivery next day or two working days plays against these fears and makes your site and those impulse purchases more attractive.
But free shipping offers a host of reasons why any eCommerce company should offer it. Increased sales — put simply, free shipping can increase sales. Not only does it lead to a reduction in cart abandonment, but also leads to increased numbers of sales. Given that so many retailers today offer free shipping shows that these old studies are on the right lines, but that increased sales due to free shipping are even more impressive than these suggest.
As we shall see momentarily, one free shipping strategy revolves around offering free shipping on orders over a certain amount. This often leads to shoppers adding things to their cart to get it over that limit and get the free shipping. It is a uniquely effective up-sell technique if, as we shall see, it is applied correctly. Increasing loyalty — Another upshot of free shipping is loyalty.
Free shipping — whether as an option, or above a threshold cart value or as part of a loyalty or membership scheme, leads to shoppers coming back to that retailer. Witness Amazon Prime. This not only gives you valuable data and insight into what they do, but it also tends to see them come back for more.
So how do you go about offering free delivery? While paying for it is the obvious question which we shall come to in a moment , what forms of free shipping you should offer is an important question — both from a practical perspective and from a profitability one.
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