According to various sources 50% - 80% of online shoppers consider this - offer free shipping as a top reason to buy from an online store. More than half of all online orders in North America included Free Shipping in 2014, with a continuing upward trend for 2015. Small eCommerce Businesses are being pressured into offering Free Shipping so they can stay competitive in the market and to keep their customers from turning to mammoth corporations. So, what can you do? Here are some tips to make offering free shipping easier:
Customers tend to buy more products at once or use “fillers” to increase the price of their order so they can meet Free Shipping conditions. Many stores can increase their Average Order Value by 30% through effectively applying this tactic (BigCommerce). Taking your Average Order Value and adding 10% - 15% is generally a good starting point for a monetary condition.
Look at the Bright Side!
Although you may feel you’re at a loss when offering your customers free shipping but looking at the numbers may tell a different story. eCommerce Retailers have found that 63% of customers are likely to recommend a store to a friend if they have been offered free shipping, they are also more likely to make subsequent purchases from you in the future knowing that they will get extra benefits by shopping with you. Competing with Big Box Retailers on product pricing is stretch for many SMBs, however, competing on shipping prices has proven to be a huge competitive advantage.
Find a Partner to Help Cut Costs
Many eCommerce retailers ship using their local postal office, unaware that they are paying higher prices for slower services than they could get from another party. eCommerce companies can benefit from substantial perks by signing up with eShipper – gaining access to the most competitive pre-negotiated rates, having the option of online pick-up scheduling and being able to compare and select services from all the Major Carriers in North America. Covering your shipping costs will be a worry of the past, there’s no harm in trying it, it’s free.
To learn more about how to save on shipping and the trends to watch out for download our free eBook or reach out to us today!