Why Businesses Should Use Free Shipping

With so many retailers are taking advantage of the internet to sell their good and services, competition for customers has drastically increased. Because most traditional stores are adding an online store site to their business, competition has become even more significant. To stay ahead of the competition, businesses have had to come up with innovative ways to attract and keep their customers. In a recent .comScore study, “72% of consumers said that if an e-commerce site eliminated free shipping, they would use another e-commerce site that did offer free shipping.” The LA Times also reported that this year, “nearly 80% of consumers said they were more likely to shop online with a retailer that offers free shipping, compared with 60% who said that last year.”

Free shipping provides a number of economical benefits that include:

- Shoppers are encouraged to buy products through an online retailer instead of visiting traditional shopping stores
- Both online and traditional shoppers have grown to expect free shipping.
- Decreases the number of abandoned shopping carts.
- Consumers are now looking for ways to lower their gas bills. Not paying for delivery counters rising gas prices.
- If retailers have a new product, free shipping will help them market it.
- Encourages repeat customers and builds customer loyalty.
- Attracts and keeps new customers.
- Helps retailers sell overstocked items and products that are not very popular
- Persuades more shoppers to make purchases than any other business promotional method.

There are a number of methods retailers can use to make the most out of their shipping service. The following shipping options are designed to accommodate the needs of a variety of businesses:

1. Free Shipping on Every Item Without any Conditions: Free shipping on all items is a useful method for retailers who make high sales. This method is very popular among shoppers.

2. Free Shipping on Orders over a Specified Amount: This method is helpful if retailers want to encourage customers to buy more products. For instance, a retailer may offer free shipping when the order totals $25.00 or more.

3. Free Shipping with Store Membership: Including shipping with a membership is a great way to create repeat customers. Memberships can be free or there may be an annual membership fee.

4. Free Shipping on Certain Products: Many retailers offer special shipping promotions on products such as large items that can include televisions, refrigerators, washer and dryer-etc. It is a cost efficient way of selling unique products.

5. Free Shipping with Coupon: Providing shipping with a coupon is a great way to increase sales. You can place coupons online, in newspapers, and in flyers. It is also a great advertising tool.

6. Free Site-to-Store Shipping: A store can cover delivery costs for products that have to be shipped from a main warehouse to the store. This will encourage the customer to come into the store and shop around.

7. Free Shipping Everywhere: Many businesses place restrictions on where they will provide free delivery. For instance, some businesses may not provide free delivery to Hawaii. Making delivery available within the entire country will help boost sales and encourage repeat customers.

8. Free Shipping to your Doorstep: Customers love the convenience of ordering a product by phone or online and have the product arrive at their home a few days later. Covering delivery costs to a customer’s home is a great way to acquire repeat customers.

Free shipping provides customers with an incentive to shop. By implementing a free shipping program in your online and traditional store, you will create happy, satisfied, and loyal customers.