Offering free shipping is one of the most recommended and effective online marketing strategies. You’ve heard it before and you’ll hear it a hundred times more.
The concept of “free shipping” ignites in the consumer’s mind the need to buy the product without having to pay additional costs.
Free shipping is a great incentive for users to buy more from your store. This is demonstrated by the Statista study: 71% of users are more willing to buy online when they are offered free shipping.
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Let’s see all the secrets behind free shipping and why you should offer it in your ecommerce.
- The psychology behind free shipping
Offering free shipping does not necessarily lead to lower prices. What you are really doing is playing with them to make them more attractive to the consumer.
Basically, “free shipping” is two words designed to strike a chord with your customers and give them the nudge they need to decide to make a purchase.
However, keep in mind that it won’t work by simply advertising it on your website. You have to think strategically about your store as a whole.
Explain the benefits of your product and highlight the differences compared to the competition. With all this information, the consumer will be able to make the best buying decision.
- Types of free shipping
Before you set up free shipping in your store, you have to make sure that it is beneficial for you as well. When you decide to experiment with this strategy, take the time to analyze its conversion rate.
If the results are not as good as you expected, it may be best to look for other strategies. But, if you finally decide to try this promotion, you should keep the following points in mind:
Decide whether you want to offer this promotion permanently or temporarily. In the long term it can be very useful to retain your customers and create greater loyalty to your brand. On the other hand, a time-limited campaign is the best option to win new buyers.
Think about whether you want the offer to apply to all products on your website or to a specific product or category. This option is the best if you are starting out with your online store.
You also have to choose if the free shipping is for all orders or only from a certain amount of money. Let’s take a closer look at the difference between the two formulas:
2.1.Free shipping on all orders
If you are going to implement the offer on all orders, you have to increase the price of your products to compensate for the costs. However, you must do it gradually, so as not to scare off your existing customers.
Imagine what they might think when they see that the price of the product has gone up by €10 overnight. We tested this technique in one of our online stores. The campaign lasted from June 2016 to July 2017 for buyers in the US and before launching it, we raised prices by $5.
During that period, orders grew by 10 more per month and the average value of each order went up by 5%, increasing our monthly profits by $250. This shows that good results do not require a radical change, but a gradual one.
2.2. Free shipping with minimums
If you prefer to set a minimum, the key is to keep an eye on the average spend consumers make in your store. You need to set an amount low enough to keep people wanting to buy and high enough to make a profit.
Think about the possible combinations of products your customers could make to reach the minimum. Make sure you have a few cheap products so that your customers can beat that minimum without having to double the value of their purchase.
For example, if you sell custom t-shirts at a price of 25€, you could offer free shipping from 50€, hoping that the customer will want to buy two. Or leave them at €35 and also offer in your catalog a personalized mug for €15.
How do you know you’re hitting the mark? Monitor the results and analyze them – trial and error will give you the answer!
If you don’t know how to set up free shipping on your ecommerce platform, take a look at the frequently asked questions on their websites.
- Marketing strategies
No matter if your campaign lasts a few days or months, promote the offer as much as you can and on different channels!
3.1. In your store
Make sure the promotion is visible once your customers visit your website. You can design a pop-up or simply add an eye-catching banner on the homepage.
But don’t stop there. If you are going to stipulate a minimum, remind your customers that they will miss out on free shipping if they don’t reach it, especially during the checkout process.
On the other hand, once your customers make their purchase, give them a small reward: a simple thank you, an email with a discount code for the next purchase they make or a pack-in on the physical order once they receive it.
Don’t forget to mention the free shipping offer in your FAQ or shipping and returns tab. Your customers will visit it sooner or later and seeing this information will reassure them that your offer is real.
3.2. Through marketing campaigns
If free shipping is going to be a long-term incentive, be sure to make it clear in your marketing campaigns. You will keep your customers coming back to your website to take advantage of this discount, so remind them of this with:
Email marketing campaigns
Effective ads
Social media posts
Take a look at the following email marketing example from Bershka. Already from the subject line it puts the user in context not to miss the opportunity of free shipping with their purchase.
Do you give free shipping to your customers?
You just have to put all these tips into practice and make the most of this marketing strategy. How do you plan to create your free shipping campaign? Do you already have experience with this strategy? Tell us about it in the comments!
Good luck and good sales!
