Unconditional Free Shipping
With Christmas just around the corner, the silly season has started for what it seems like even earlier this year, with ever more competitive offers and services from your online counterparts with the recession not making matters much better. Straight to the point with this article, research points out that free shipping is key to giving your customers just that little extra nudge to make the click on add to cart. Although customers are usually drawn to savings, they are starting to realize the savings are actually in the shipping, and are taking careful consideration in who they choose to purchase from. However switching over to unconditional free shipping requires a lot of planning and consideration as to whether it is commercially viable.
One of the biggest problems with unconditional free shipping, is that profit margins are severely hampered. The size of these margins on the average order drops quite considerably if you are offering this service. Larger companies may be able to afford the hit, in the hopes of gaining new customers, the big question is, can you afford to do the same. Will the gain in customer base significantly have a positive impact on your long term ROI (return on investment). Can your business really afford a loss, in these trying conditions?
The stats don’t point in favour of unconditional free shipping either, with only 53% of online retailers trying unconditional free shipping offers, and even less than half said they would make use of it this coming Christmas season.
To creator a safer testing ground by offering free shipping, you need to follow steps which will safeguard your company. For many retailers, limited time free shipping is a much safer route.
Firstly, list all the items that carry the highest shipping costs, and consider maybe removing these items from your free shipping offer.
Lead your customers by using your web design and navigation to products that have lower shipping costs and perform well. Try to place them in high traffic areas such as your home page, or in a special seasonal section.
Many retailers get by with free shipping by maximizing the use of cross-sells. Try and match popular products together increasing the chances of a customer purchasing more than one item.
If your shipping offer is for a limited period only, you need to choose when you will offer it carefully. Ground shipping takes time especially as volumes increase over the Christmas period. Ideally your free offer should fall well before the silly season. Late deliveries will negate any goodwill you have created with your free shipping.
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