How many times were you at the checkout
page and you see that little addition in the bill that says
‘shipping’. Yes, it is possible to see that addition magically go
away. All you need to do is, buy another item, to make your total to
a certain amount and voilà, you are now eligible for FREE shipping.
First of all, there is no such thing as
free shipping. It is an illusion. Customers are made to believe it
and they do.
Psychology:
Studies have shown that
nearly 40% of regular online shoppers prefer retailers that offer
free shipping.
Additional Sales:
If a $12 item costs
$5.99 to ship, the customer would much rather pick an other item and
make the purchase eligible for free shipping, than pay for shipping.
Seasons and Holidays:
The traffic for
online purchases are its highest during season sales and holidays.
People are only too happy to pick out more items, which usually,
almost every time, qualifies the purchase for a free delivery.
USPS:
United States Postal Service is
one of the best carrier options for packages that are five pounds or
less. USPS economic and most affordable.
There is a certain loss of profit
margin for retailers in free shipping, especially considering the
rise in shipping prices and the imposition of dimension weight
pricing. However, there are several different options for retailers
to deliver products to customers without having to take a mainstream
hit in their revenue. The retailer may have to convince the customer
about a slower delivery, but that apart, free shipping has helped
retailers. Last year, 43% of online retailers have reported that free
shipping offers had drastically increased their sales and profits.
The shipping may be free for the
customer, but for the retailer there are costs involved in the
integration of programming, advertising and marketing. The nature of
the shipping offer will determine the IT power needed to execute the
intact processing and delivery. But increased sales and higher
customer loyalty is able to compensate the resources spent in
programming and advertising.
If there is a unique product on the
website at a special price, the customer’s purchase on a website
would not be affected. Which means, the customer’s decision to make
the purchase is not contingent on a free shipping offer. However, the
free shipping offer acts as a marketing element, which goes on to
fetch repeat sales and an increased loyalty.
Online businesses should check and
explore multiple options for delivery, before actually offering free
shipping. Should they have a threshold to make the purchase free
shipping, or the free shipping is offered for just about any
transaction. Is it free if it ships beyond a certain jurisdiction, or
should the shipping be charged if the item requires a special
arrangement during transit. Free shipping is not mandatory. It is an
accessory that makes the shopping experience exciting for the
customer and for the business – an elevation in sales numbers.
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