The Benefits Of Free Shipping Policy & Its Impact

Dec 30, 2019 John William John William

Why You Need To Have A Free Shipping Policy

"Buy me!” Nothing yells less than two simple words for online consumers, i.e., Free Shipping.  This term plays an attractive role. Customers prefer to stay at home instead of visiting the nearby shop physically and buy comfortably what they want. If you don't seriously think about giving your customers this advantage, the e-business having modern logistics solutions will catch your targeted audience.


What Is Free Shipping?

Free shipping is a promotional strategy that reduces the specified costs of shipping transactions. Free transportation is as varied as any other e-commerce portion. It's a strategic trick, the argument about the free shipping. Free shipping is planned by a certain process to draw shoppers. "Free" is always good and attracting. Add this 'free' motto to the word 'shipping,' and you have succeeded somehow in shopping mind.


Reason for a Free Shipping Policy

There are several motives behind selecting a free or paid shipping policy. Every corporation has its own logic and ideas. But numerous logistic expert and analytical business approaches recommend free package delivery strategy.

a) Increase sales

It is a fact that discounts and freebies attract human physco. Consumers wait for occasions and events to avail such offers. Then why you are not offering something throughout the year? Yes, according to stats, 90% of users desire to place an order from a free shipping offering company. It is one of the main reason organizations offer their clients with free shipping facility.

If you didn’t try this, just try it out once. You will notice that free deliveries will increase the sales of your online store. Addition to this, it will also affect the expense of sensitizing your bid, including development and promotional costs.

b) Client’s loyalty will be established

A large number of online consumers can only purchase from dealers offering free shipping, and traders can fairly expect to buy new customers when it is offered.

In addition to any short-term profits, it is crucial to think about providing a fantastic, repetitive, and lifetime valued shopping experience to your clients, if you were not offering the freebie facility. You can establish customer’s loyalty through considering all these, and they will stay faithful to your brand. Hence, you can see the rise of consumer engagement over your online store and sales as well.

c) Seller take charge until product delivered

When an online company presents free shipping, they are not relying on any part of the services with any other facilitator. They want to take every customer from the initial level to the point when the chosen item reached the doorstep of the customer. They understand an ethical responsibility to provide a feeling of satisfaction, which will not be possible until their representative confirms the delivery. Such an organization will leave its brand image in the consumer’s mind. Make sure that you have taken all the necessary steps to improve the shipping concerns.

d) Focus on operational efficiency

It is quite obvious that when any organization offers free shipping, it has to adjust the parcel delivery charges within the cost of the merchandise. Now here you may find two options to select anyone.

1) Increase the price of the product that affects customer retention. Moreover, it will decrease sales as well.

2) Maintain the cost value to maintain the sales lead. But on the other hand, try the cost-cutting of the product and enhance efficiency to attract more clients for meeting the expenditure of the company.

Definitely, option b is the first approach of every business. Otherwise, what is the benefit will you get from such a policy?

e) Your competitors already offering

If other stores offer the free facility of shipping, you must be conscious enough about the competition. Nonetheless, you could still have a competitive edge over your competitors regardless they are observing the free shipping policy or not.

Do not make the error of thinking that you have no competitors, because potentials customers can find them easily. Note: everybody has Google access.

“When our analytical team traces the competitors, they list down the problem in our working. The first point of that list is integrating free-shipping policy into the system.”, says Ms. Jenny Gill, a Customer Relationship Manager of PremiumJackets.

If you have free delivery and a competitor does not but has a slightly lower product cost, customers may be willing to pay more for your product. Surprise charges may also increase carts that have already been abandoned.

Browse your niche through multiple eCommerce websites. You will have to do it too if most of them offer free shipping.

f) Become choosy of shipping organization

When a customer noticed that the online e-commerce store is providing free shipping, they get relaxed. Now, they have nothing to worry about the package delivery. It means that such company is responsible to hire only the services of authentic and reliable services.

“Once we deal with one of our old client who was happy with our products to provide her free shipping facility as complimentary. We packed the parcel and dispatch through a well-known shipping company. Oh, our bad luck! Due to the bad weather, her package was delayed for 2 days. We were amazed to view a bad review posted by the same old client.” – Mr. Tony James address in the convocation ceremony speech at Academist Help.

Therefore, you will become very selective because any issue due to the carelessness of the shipping company hurts your company’s brand image. Although, there is no fault from your firm.


Conclusion 

You are now armed and willing to choose your own free shipping policy and test it out. Free shipping is an established and efficient marketing tool that can increase conversion rates and satisfaction of customers. You only have to try and find out what works best for you and your customers!


John William is a shipping consultant at Crowd Writer and King Essay, a reputable website that offers buy assignment online. He shares information through Object Me to show tech usage with the technical method.

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