In our last blog, we highlighted a number of reasons why it is worthwhile to offer free shipping to your online customers. It’s an excellent marketing tool, it helps to prevent cart abandonment and it gives your online shop a competitive advantage. In today’s blog, we will continue to explore how eliminating shipping costs can grow your online sales.
It increases average order value.
Would you like it if your online customers made larger purchases? Of course you would. When a person sees that he/she will save on shipping costs, it makes him/her a lot more likely to add another item to the basket. Many e-retailers have decided to pad their product prices so that they’re not losing out by waiving shipping fees. Chris Wilson of i95Dev reveals that a Deloitte report found that 40% of customers are willing to buy more items if they qualify for free shipping.
“Free shipping is known to put shoppers in a better mood, which may lead them to spend more, “ he writes, “In an online shopper survey, Compete found that 93% of online buyers are encouraged to buy more products if free shipping is included. In another study from Wharton, it was found that Shoppers spend 30% more per order when free shipping is included.”
It grows your brand’s reputation.
At this stage of the game, if you’re not offering free shipping, you’re just being rude. Okay, not exactly. However, by adding shipping costs, you’re not exactly meeting the needs of the majority of consumers. Many people have come to expect that when they’re shopping online, they won’t be met with extra costs at the checkout. It’s no secret that added fees are displeasing.
“When it comes to consumer purchasing behaviours, a 2021 Consumer Trends report found that 71% of consumers shopped around for the product they wanted to find the lowest shipping price,” reveals the U.K.’s Accountancy Cloud, “While 61% were happy to shop around for the product they wanted with the fastest possible shipping time. Free or low-cost shipping and fast shipping are two of the top five reasons why people shop online.”
It increases customer loyalty.
Wouldn’t you go back to an online store that offered free shipping? If you know that a site will give you the opportunity to save with each and every purchase, why would you choose a competitor? Wilson acknowledges that Amazon is proof that free shipping inspires customer loyalty.
As he explains, “according to a 2015 report from Consumer Intelligence Research Partners, Prime members spend an average of $1,500 per year on Amazon.com, compared with $625 per year spent by Amazon customers who aren’t Prime members.”
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