Free shipping has become an essential benefit that customers look for when shopping online. According to a recent report, 60% of online shoppers abandon their cart because of high shipping costs. Such statistics highlight why businesses need to offer free shipping to attract and retain their customers. Here are some considerable benefits of offering free shipping in your eCommerce store.
Higher Conversion Rates
Offering free shipping on orders is an effective way of increasing conversion rates. Customers tend to purchase more when they see that the shipping costs are already included or waived. This is also true for customers who only intended to browse. A study shows that 9 out of 10 customers who have abandoned their carts due to high shipping costs are likely to complete their purchase if free shipping was an option.
Improved Customer Retention
Free shipping is not only a great way to get new customers, but it also helps to retain your already existing customers. Customers who are satisfied with your services are likely to return and recommend your business to others. Offering free shipping can improve customers’ loyalty and encourage them to make repeat purchases.
Increased Average Order Value
Customers who are looking for free shipping often add more items to their carts to meet the free shipping threshold. This is an opportunity for businesses to increase their average order value. Customers tend to purchase products they need along with the ones they want. They tend to buy more to meet the free shipping threshold, which increases sales for businesses.
Competitive Advantage
Offering free shipping is one way of standing out from competitors. Customers are more likely to choose your business over your competitors if you offer free shipping. In a market where competitors are offering free shipping, it becomes imperative to offer the same. It can be a deciding factor for customers if all other aspects are comparable.
Positive Customer Experience
Free shipping can lead to a better customer experience. Customers are more likely to be happy with their experience when they don’t have to worry about paying extra for shipping. Customers tend to remember good experiences and tell others about them, leading to more positive reviews for your business.
Final Thoughts
Offering free shipping comes with a cost, but the benefits outweigh the cost. It can lead to more significant sales, improved customer retention, better customer reviews and help businesses stand out from their competitors. It is a great investment for eCommerce businesses with paid shipping options. With the right strategy, free shipping can be an opportunity for businesses to improve their bottom line while providing an excellent customer experience.
