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According to SellersCommerce, 70% of consumers say free shipping is the main reason why they shop online. Hence, free shipping is a tried and true way to attract customers to boost sales. However, offering free shipping comes with its own set of challenges, especially for businesses that try to manage costs. Therefore, in this blog, we will discover some smart ways to offer free delivery in a way that benefits both your customers and your bottom line!
5 Smart Strategies to Provide 'Profitable' Free Delivery
1. Set A Minimum Spend Threshold
This is the smart strategy that is widely used by Shopee to ‘trap’ its consumers. So, you can encourage customers to reach a specific minimum order amount to qualify for free delivery. For example, you could offer free shipping options or vouchers on orders over S$15. This tactic can significantly increase your average order value as customers add extra items to their cart to avoid paying for delivery.
2. Offer Free Delivery on Selected Products Only
Rather than offering free shipping across your entire catalogue, you can consider applying it to selected items. This could include high-margin products, items that you want to clear out of inventory or new arrivals you want to promote. Hence, limited free shipping to specific items can help you manage costs and still drive sales. For example, Shopee offer free delivery vouchers to its users who purchase clothes on Fashion Day.
3. Include delivery Costs In the Product Price
A simple trick to offer ‘free‘ is to roll the delivery costs into your product pricing. This approach can help you to maintain your profit margins while creating the perception of added value for customers. Many customers prefer setup, as they’re getting a better deal without additional charges, popping up at checkout.
4. Use Free Delivery as Limited-Time Deals
Creating a sense of urgency (FOMO – Feat Of Missing Out) can motivate customers to complete their purchase sooner rather than later. Limited-time offers like ‘Free Shipping Weekend’ or ‘Free Shipping on Fridays’ can create excitement and encourage immediate purchases. Seasonal events or sales, like Pay Day sales, or holiday shopping periods, are perfect times to offer these deals.
5. Partner with a Cost-Efficient Delivery Service – EasyParcel
Low shipping costs are key to making free delivery work for your business. EasyParcel offers affordable delivery rates by partnering with various couriers, allowing you to find the best options for each order. By leveraging EasyParcel’s cost-efficient network, you can offer free shipping without overextending your budget.
Free delivery doesn’t have to mean sacrificing profit. With a combination of clever pricing strategies and the right delivery partner, you can offer this highly appealing incentive in a way that strengthens your business. And with platforms like EasyParcel, delivering a fantastic customer experience just got a whole lot easier.
