How To Offer Free Shipping For Ecommerce

Determine that threshold based on average order values, gross profit margins and shipping costs. In many cases, shipping costs can greatly increase the final price paid for an item bought online. If an item costs $25 and the shipping costs are $5, the shipping costs have raised the price by 25 percent. For example, sustainable clothing brand Reformation offers free standard shipping by default.

Why Free Shipping Is A Must

I’ve been helping brands & retailers build 8-figure eCommerce businesses since 2001. I'm also the founder of eCommerce Training Academy and the creator of 8FigureEcommerce.com Click here to learn more. 47% of shoppers indicated they would abandon a purchase if they got to checkout and found out free shipping wasn’t included. Small, easy-to-ship items, like office supplies or consumer electronics, are ideal for occasional free shipping offers. Offering free shipping is a powerful marketing tool because it reassures customers they won’t be charged a surprise high shipping fee when they place their orders. You have a full year to return or exchange Target-owned & exclusive brands.

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Get free shipping when you use your RedCard on Target.com. Restrictions apply, click the Target RedCard button for details. If you’ve been wondering, “Should I offer free shipping?

Packages arrive within five to 10 business days, but if a customer would like to receive their items sooner, they can pay a shipping fee of between $10 and $40. 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.

Or you can offer free shipping when certain criteria are met. These criteria can be based on a minimum order amount or orders over a certain weight. Ninety-four percent of consumers say a positive customer experience makes them more likely to purchase again. And offering free shipping is often a hallmark of a great customer experience.

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Oddly enough, there is a slight age variation on whether consumers prefer free shipping to traditional percentage discounts. According to research cited by eMarketer, respondents between the ages of 18 and 45 preferred percentage discounts to free shipping when making a digital purchase. Older internet users preferred free shipping above discounts. The dichotomy shows why retailers would be wise to include both options in their holiday marketing campaigns.

Global and nationwide retailers can set up shipping zones that group countries or regions together for specific shipping rates. For example, in a shipping zone in the US, you could set a flat rate of $5 and another flat rate of $2.50 for orders that are over $50. In addition to giving customers different shipping options, you can help them offset their carbon emissions during checkout. This is how DTC cookware brand Great Jones increases conversions and average order value. It offers free shipping at $100, pushing customers to order more than one item.

For example, if your average order value is $50 and you set your free shipping minimum at $500, no one is going to bite. Free shipping can also be part of a subscription sales strategy, wherein customers sign-up to receive periodic shipments of merchandise at a set interval. For example, Dollar Shave Club offers free shipping on all orders as part of its subscription service.

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In the post-pandemic era, business owners may find they need to increase product prices to keep up with increasing shipping costs. Doing so will help you keep up with the rise in demand for speedy worldwide shipping. If you offer free shipping, it’s going to come out of your bottom line, and most startups and small eCommerce retailers are already working on small profit margins. How can you offer free shipping without losing money—or at least without losing much money?