Online retailers have a number of incentives to start offering free shipping to their customers. Free shipping is an excellent way to increase your website’s conversion rate and strengthen relationships with your customers, which can lead to an increase in customer Lifetime Value (LTV). Consumers are used to free shipping with websites like Zappos and are even paying for memberships with Amazon Prime and FreeShipping.com to get the benefits of free shipping. As such, they see shipping fees as unnecessary and may even consider inflated shipping rates to be a scam. This infographic lays out the main reasons why online retailers should consider offering free shipping, or partnering with a service such as FreeShipping.com to help defray shipping costs.
Top 10 Reasons to Offer Free Shipping to Your Customers
Improve your online reputation while you increase sales volume and profitability.
Reason #1: It’s the New Standard
Avoid Complaints: Consumers expect free shipping and shop elsewhere when it’s not available.
Reason #2: Gives Incentive to Buy More
Free shipping minimums are an enticing way to increase Average Order Value.
Reason #3: Improves Customer Experience
In 2012, 20% of customers said that free shipping is the most important factor in where they shop online.
Reason #4: Encourages Top Consumer Ratings & Reviews
Your great service will be discussed on comparison shopping websites, shopping forums, and directories, rather than on scam sites.
Reason #5: Stimulates Word-of-Mouth Advertising
63% of buyers said that free shipping has led them to recommend a retailer.
Reason #6: Reduces Cart Abandonment
61% of consumers said they will cancel their purchase if free shipping isn’t offered.
Reason #7: Free Return Shipping Instills Consumer Confidence
People shop with confidence when their risks are low.
Reason #8: Maximizes Customer Lifetime Value (CLV)
Companies that adopted free return shipping reported a 58% – 537% increase in sales over two years.
Reason #9: Encourages Customer Loyalty
Build loyalty by giving customers points towards free shipping or offering a service similar to Amazon Prime.
Reason #10: Improves Profitability & Branding
Offer free shipping on high-margin items or the house brand to make more money per order.