While many claims that the free giveaways would burst the eCommerce bubble like it did in late 90’s, eCommerce giants like Amazon claim that free services are just the baits. It says that “you got to apply certain strategies by which you are able to cut the cake and have it too. You are not a businessman if you don’t know how to compensate for the loss.”
Well, everything sounds right but again Amazon is AMAZON. And we are not Amazon. Right? WRONG. First of all, you shouldn’t consider free giveaways without analyzing the requirements of your store. Although giveaways and free services like shipping impact your business, you really got to check if you really need them or not. You need to analyze the shopping cart abandonment rate and reasons causing it.
To my recommendation, and of course Amazon’s, you should carry a pilot project and check if free shipping is working for you or not.
What is Free Shipping?
It is a tactical strategy by which you either try to acquire or appease the customers. The behavioral economics of free shipping is very simple to understand.
- You charge nothing for the delivery.
- You pursue the shoppers psychologically.
- You deliver the service.
Free Shipping And Its Impact- A Fair Quid Pro Quo
As mentioned above, many investors and small enterprises fail to capture the economics of free services. So, why are fat companies relying on such methods? That’s because they believe that free services barter you customers’ loyalty. The cascading effects of the free shipping give concession to you in the form of sales, revenue, conversion, trust, etc. I see no point in squandering money headlessly if there is no return.
● Free Shipping Increases Average Order Value
The amount spent by the customers each time they order in the online store is the Average Order Value. It is one of the good reciprocatory element of the free shipping. How does it do that? Usually, the benefits of free shipping are availed to the customers when they cross the threshold value of the purchase value set by the admin of the store.
Example: A customer looking to purchase a 90$ shirt would easily go for 10 more $ to enable the free shipping promotion. It is the best way where merchants ask its customers to spend 10$ extra to take advantage of the promotion.
● Free Shipping Elevates Sales And Revenue
The rise in Average Order Value by Free Shipping is directly proportional to the sales and the revenue of the company. And when it does that, why would any merchant ignore its importance?
Example: A customer who wished to purchase a 90$ item would buy additional products to gain the free shipping services. With each dollar they spend extra, sales of your company rise.
● Free Shipping Converts Tentative Minds
You need to eradicate the tentativeness among the shoppers. Why is it necessary to clear their doubts? Because you do that to convert those who feel that shipping charges are not aligning with their budget. Since Free Shipping Bar gives coherency to the purchase decision, the rate of conversion automatically surges to a great level.
Example: A shopper is on the verge of deserting the cart. As soon as you show the free shipping promotional scheme, a sense of urgency triggers in their mind. Just when you make them reconsider about your product, you win a moral victory and a possible conversion.
● Free Shipping Brings Loyalty
Serving them for what they want might make them loyal towards your store. Once you make them loyal towards your store, your task is to maintain it. By carrying out free shipping in the name of loyalty programs, you can help your customers trust you.
Example: Using a message like “Thanks for being a loyal customer. We have enabled free shipping for you” can help your customers feel personalized and that you care about them.
● Free Shipping Bridles The Shopping Cart Abandonment
One-third of the carts are abandoned due to the unexpected shipping rates. Free shipping helps the merchants to beat their expectations. It gives them a sense of assurance that they are not overcharged and generates a condition of urgency in taking the final purchase decision.
Example: A customer suddenly sees the shipping charge at the final checkout. It confuses the shopper and compels him to roll back his decision resulting in shopping cart abandonment. If you are able to promote free shipping on the checkout page, you could prevent last-minute leave offs.
● Free Shipping Sets the Mental Lucidity
There is a lot of doubts while buying from an online store. It becomes extremely vital for the merchants to kill this dubiety. Conversion is based on the mental status of the shoppers. Unless they feel secure about the price, product, and quality, they are unlikely to convert. Free-shipping bar sets the state of mind. Free Shipping Bar messages trigger the urgency and help in developing a purchase state of mind. It constantly reminds the shoppers about free shipping policy of the Magento ecommerce business.
I personally consider free shipping a fair deal if it promises to convert more than what we usually see. In addition to all the advantages, here is how you can make it a profitable strategy for your store:
- Set Minimum Order Value
- Free delivery for ground shipping only (as it is the cheapest)
- Grant low flat rate shipping
- Include the shipping cost in product prices
- Giving free shipping for bulk volume items, if free shipping for each product is not possible.
How to Promote Free Shipping for your Business?
Free shipping promotions has been made possible by an extension called Free Shipping Bar.
E-commerce industry is brimmed with Magento developers. These Magento developers work hard to make eCommerce a cost-effective trade.
Features of Free Shipping Bar Magento 2 Module:
- It helps in setting up the threshold cost for the customers to reap the advantages of free shipping.
- Make the customers know about free shipping offer in intuitive ways.
- It automatically calculates the remaining amount needed to obtain free shipping, when a shopper adds the products to the shopping cart.
- Merchants get rights to add their own custom messages for free shipping.
- Moreover, the merchant can also set font size and color of the message text.
- A progress bar is also included to show how far the customer from availing the free shipping offer is.
- The Merchant can set the background color of the progress bar.
- It offers to upload images for the mini-cart loader and empty mini-cart.
- It allows setting of own shopping cart title. 10.Reflects a successful message which shows when customer avails free shipping.
The Inference
With customers’ expectations reaching heights, free shipping is slowly becoming an expected service. But in the thirst of fulfilling the expectations and as early as possible, many eCommerce owners fail to analyze all pre and post-situations. Free shipping can’t be executed by an overnight decision. You need to read certain aspects of it and work in accordance with those aspects.
Interested to know more about Mconnect free shipping Bar Magento 2 module? Kindly visit the page.
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