Get ready to navigate the exciting world of online shopping – including tempting free shipping offers. We all love the idea of getting that perfect product delivered straight to our door without any extra charges. But with so many online retailers offering ‘free shipping’, it’s important to understand what this really means and how to make the most of it as an online seller yourself.
Image courtesy of SHVETS productio. Published on: March 20th, 2021 Source: Pexel.com
The allure of free shipping
Let’s face it, free shipping is a potential game-changer. It eliminates that unpleasant surprise at checkout and makes budgeting for online purchases a breeze. Plus, it makes the overall deal seem more attractive, and encourages us to hit that “buy now” button a little faster.
Free shipping: A double-edged sword
Free shipping undoubtedly entices customers. It simplifies the checkout process, eliminates sticker shock at the final step, and positions your products as being better value (without the need to discount your prices). However, as a seller, it’s crucial to understand the impact that offering free shipping can have on your bottom line.
Turning free shipping into a profit booster
Here’s how you can strategically:leverage free shipping as a South African online seller:
Calculated Price Adjustments: Consider incorporating a slight markup into your product prices to account for the cost of free shipping. This ensures you maintain profitability while offering the perceived value-add of free delivery.
Minimum Order Thresholds: Set a minimum purchase amount for free shipping to encourage larger basket sizes. This increases your average order value and offsets the costs of offering free shipping. Many customers will prefer to purchase an extra item to get their basket ‘over the line’, rather than ‘waste’ the same amount of money on shipping. Depending on the nature of your business, you could even consider adding a range of smaller, cheaper items that will appeal to customers whose initial cart value is just below the threshold – and then setting the threshold at just above the price of some of your most popular items.
Tiered Shipping Options: Offer free shipping for orders above a certain amount and tiered rates for lower purchases. This incentivises customers to reach the free shipping threshold while providing flexibility for smaller orders. When compared to an ‘all or nothing’ threshold, this approach helps to position your online store as being more consumer-friendly
Strategic Promotions: Utilise free shipping as a limited-time promotional tool during sales or new product launches. This creates a sense of urgency and drives conversions. It can be particularly effective if you tie it to other promotional occasions like Black Friday.
Beyond the basics
Highlight the Benefits: Clearly communicate the free shipping offer on your product pages and (especially) at checkout. Emphasise the customer savings and convenience that free shipping represents.
Transparency is Key: Be upfront about any minimum order requirements or limitations associated with free shipping. This builds trust with your customers and makes abandoned carts less likely.
Optimise Delivery Efficiency: Partner with reliable and cost-effective shipping providers to ensure timely and affordable deliveries, thereby minimising your own shipping costs and enhancing your customer service offering.
The Takeaway
Free shipping can be a game-changer in the South African online market, but it requires a planned, strategic approach. By understanding customer psychology, implementing the tactics mentioned above, and constantly monitoring your analytics, you can turn free shipping from a cost centre to a profit driver. Remember, Bob Go is always here to help you navigate the world of ecommerce, and help you succeed in reaching your ecommerce goals.
