Free shipping may be an efficient tool for online merchants, because it attracts customers and lets them realize that they won’t pay any extra money, except the price of the product they’re purchasing. A lot of companies use this strategy to increase their sales, revenues and even the customer loyalty. It is considered to be some sort of holy grail in reaching the top. But is free shipping really so effective? Let’s figure it out.
If you look at several eCommerce websites you’ll see free shipping almost everywhere, which means that you probably won’t rise above your competitors attracting thousands of customers every day. It seems like free shipping becomes the top leader in business promotion but is it really worth trying?
In this case the word “free” is like a gear turning a green light for purchasing. People like “free”, that’s why if they need to choose between a discount and free shipping (even though the amount of money save is exactly the same), they will value “free” much more. It’s just a simple psychology.
At first glance this strategy doesn’t seem in any case profitable for the merchant. But how to make free shipping work for you and boost your revenue? Lay down conditions! Yes, everything’s easy. For instance, “buy two items and get free shipping” or “make a $300+ purchase and get free shipping”. We are pretty sure the number of these examples can be almost unlimited. And everyone’s happy! Your customer gets his favorite “free” and you can be satisfied by your profit.
Not to incur losses, you can include shipping expenses in the price of products you sell. But the pricing should be reasonable in this case, because you might lose your customers, who may be attracted by lower prices of your competitors.
One more solution is to provide a free shipping of subset of items. You need to select the items with the high margin and consider shipping them for free. That will be a wise solution for those who can’t afford free shipping on all the products across the webstore.
Not so bad idea is to provide your loyal customers with free shipping. For example, you can send a personalized email with an offer to deliver items for free. There is only one condition: this offer should be really exclusive. Make them feel special.
So, in a nutshell, we could say that free shipping still remains effective promotion trick that you may use on your Magento websites and it can significantly improve your income. Of course, there have to be a lot of other attractive options for your customers, except free shipping. But people subconsciously like something that is free and doesn’t require any extra expenses. Then why not to make a benefit from this psychological tendency? Let’s return to the question asked at the beginning of the article: Is free shipping really so effective? And our answer is: definitely yes (if everything’s done wisely).