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Thread: How Free Shipping Influence Online Buying

  1. #1

    Default How Free Shipping Influence Online Buying

    Definition: Free shipping is an increasingly-popular option for online shopping, where customers do not have to pay an additional shipping charge. Free shipping is attractive to customers who appreciate simple pricing structures, which in turn makes it a potential competitive advantage for online businesses.Online businesses can also reduce overhead through established relationships with shipping vendors. Free shipping is also a long-term play: taking a short-term loss can be a smart sacrifice with a big-time payoff down the road if the policy generates loyal customers and brand advocates. Free shipping can be an effective marketing tool that aims to benefit both the consumer and the retailer. There are many ingenious ways to generate revenue and keep consumers returning to a particular online store. The majority of businesses choose to offer free shipping in conjunction with additional delivery options such as overnight express delivery at a cost to the consumer. Additionally, the delivery campaigns below offer ways to increase sales.Many savvy shoppers will add additional items to their shopping cart to receive something for free, especially delivery. Up-sell through the use of a free shipping campaign.Offering free shipping during a specific time frame is ideal for increasing sales during slow periods — or offers further incentive during highly-competitive seasons.

    Why offer free shipping?
    Shipping options play a pivotal role in an online shopper's decision of where to spend their hard-earned dollars:

    By providing numerous shipping options, an online retailer can capitalize on the booming ecommerce experience to generate revenue streams through increased sales. Free shipping entices customers to purchase by wrapping all costs into the price of each item. Shopping carts are often abandoned at the checkout when customers are dissuaded by an additional shipping charge. Maintaining a steady cost from product page to checkout increases a customer's likelihood on following through with the purchase.Free shipping continues to have a significant influence on purchasing for 75% of global shoppers, with 58% of people expecting free next-day delivery. Successful retail brands need to rethink everything from where goods are produced to how they’re shipped to meet these expectations fast.

    While current shipping delays, supply chain issues, and worker shortages continue to create fresh challenges for retailers, in 2021, 69% of all Shopify merchants offered free shipping—the same as in 2020. Shipping is one of the most important parts of the online shopping experience—it’s often what dictates whether customers make a purchase or abandon their cart. For fast-growing retailers, free shipping is a chance to streamline checkout and encourage more customers to press Buy. Retailers set conditions like these to avoid free shipping from negatively impacting their profit margins.

    Some online stores may always offer free shipping, no matter how much a customer spends on their purchases. This can enhance the shopping experience and boost brand loyalty. Free shipping is appealing to customers who prefer simple pricing structures. It also helps reassure customers they won’t run into unexpected charges during checkout.Brands often use free shipping policies as part of the marketing strategy to encourage customers to shop with them. For example, sustainable packaging brand Package Free offers shoppers free domestic shipping on orders of $65 or more. It advertises this on a top banner on its homepage.

  2. #2
    Junior Member Shikari's Avatar
    Join Date
    Jul 2021


    By establishing relationships with shipping vendors, online businesses can also reduce their overhead costs. While offering free shipping may result in a short-term loss, it can lead to significant benefits in the future by increasing customer loyalty and driving more sales. It serves as an effective marketing tool that benefits both the consumer and the retailer.

    There are various strategies to generate revenue and encourage repeat purchases from customers. Many businesses choose to offer free shipping alongside other delivery options, such as overnight express delivery, which incurs an additional cost for the consumer. This approach allows savvy shoppers to add more items to their cart to qualify for free shipping.

    Furthermore, offering free shipping during specific time frames, especially during slow periods or highly competitive seasons, can help increase sales and incentivize customers to make purchases. The availability of multiple shipping options plays a pivotal role in customers' decision-making process when choosing where to shop online.

    The influence of free shipping on purchasing decisions remains significant, with 75% of global shoppers considering it a crucial factor. Moreover, 58% of people expect free next-day delivery. To meet these expectations, successful retail brands must adapt their production and shipping methods.

    Despite challenges such as lead enrichment, shipping delays, supply chain issues, and worker shortages, many online retailers continue to offer free shipping. In 2021, 69% of all Shopify merchants provided free shipping, the same as in 2020. For growing retailers, free shipping presents an opportunity to streamline the checkout process and encourage more customers to complete their purchases. Retailers often set conditions to avoid negatively impacting their profit margins while still offering free shipping.

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