There are an estimated 12 million – 24 million e-commerce stores online. But not all of them are thriving and making a good flow of money.
When you start an e-commerce store, there are many things you can do to increase your sales and attract customers, but one thing that stands out among all the other measures is offering free shipping. It may not sound like a big deal, but offering free shipping affects customers mentally. According to a survey but Shippo in 2021, 83% of people prefer free shipping over low shipping costs. Free shipping might look like selling at a loss with the shipping cost, but adding the shipping cost to your product and selling it at a little higher price with free shipping is more appealing to buyers.
While you might not be convinced yet to offer free shipping, here are some benefits of offering free shipping on your e-commerce website.
1: Increased Sales
According to a business insider report, 155 billion worth of e-commerce packages in the US in 2021 were shipped through free shipping. As mentioned above, most people prefer free shipping. Most of the time, people cancel their sales after seeing increased prices at the checkout while seeing lower ones in the catalog. People make up their minds and calculate the shopping impact before checking out and seeing an increased price at the checkout fades their interest, as the final price may get out of budget. With free shipping, people can see the final prices at the start and buy products with respect to their budget.
2: Simplified Pricing
A customer can visit your store, look at their budget, and make a purchase without having to think about the final price or shipping fee. Seeing the final price on the front screen will encourage them to decide whether to buy without worrying about increased prices.
3: Competitive Advantage
With more than 12 Million e-commerce stores online, standing out amongst the successful ones can be an uphill challenge. Offering free shipping will not increase your sales and make your store a successful e-commerce website right away, but it will give you a competitive advantage over others who cost shipping fees. This might not always be the case, but it most certainly attracts more genuine buyers.
4: Improved Satisfaction
A customer loves free shipping. Free shipping on orders enhances the online shopping experience, which may attract the customer to return to your store again in the future rather than trying out competitors. And as any retailer knows, repeat customers are valuable assets. Therefore, free shipping also increases repeat business and customer loyalty.
5: Marketing Opportunity
You can use free shipping to create better opportunities for your business, as it attracts new customers, and will help to grow your brand. Promoting your store and distinguishing free shipping as your exclusive store perk will attract more buyers to your store, thus increasing your sales. That’s how you can use free shipping for your brand promotion.
Summary
Offering free shipping creates a psychological impact on the buyer’s mind, making it look like a better deal than one with shipping costs. These little impacts on the buyer’s mind play a big role in e-commerce store sales. It can attract more customers and genuine buyers rather than people visiting your store and canceling their purchase at the end after seeing the final price. However, it is important to consider the financial impact of offering free shipping on your store to ensure that you are still making a profit by offering this option. Lastly, If you need any help wiith your E-commerce business, feel free to approach us. We are excited to help you grow. You can contact us at https://strategyinn.com/
