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Free Shipping Frenzy: How to Make it Work for Your Ecommerce Brand (and Boost Profits!)

Free shipping – those two magical words that can turn website browsers into loyal customers. But for e-commerce businesses, it's a double-edged sword. It entices customers, but can it eat into your profits, especially with rising carrier costs?

At We Are Fulfilment, we get this question a lot. Here's the truth: there's no one-size-fits-all answer. However, there is a strategic way to leverage free shipping to increase your average order value (AOV) and ultimately your bottom line.

The Psychology of "Free"

Let's face it, free shipping is like a siren song to online shoppers. Studies show that customers are willing to spend £3 more per item on average and add an extra item to their basket when free shipping is offered. That translates to a £20 bump in overall order value! That's pretty significant.

Free Shipping as a Strategic Tool

With inflation on the rise (and 81% of businesses raising prices in response!), free shipping becomes an even more compelling strategy. It lets you compete effectively without resorting to constant price hikes.

Here are some ways to use free shipping strategically:

  • Minimum Order Threshold: Set a minimum order amount required to qualify for free shipping. This encourages customers to spend a little more to reach that threshold and boost your AOV.
  • Tiered Free Shipping: Offer free shipping on orders above a certain value, and paid shipping for lower orders. This gives customers the option they prefer while still incentivizing them to spend more.
  • Limited-Time Free Shipping Promotions: Create a sense of urgency with limited-time free shipping offers. This can clear out slow-moving inventory and generate excitement around your products.

Remember:

  • Free Shipping Doesn't Have to be on Everything: Consider offering free shipping on specific categories or new product launches to encourage exploration.
  • Factor in Free Shipping Costs: Free shipping isn't truly free. Build the cost into your product pricing or factor it into your minimum order threshold.

Beyond the Free Shipping Frenzy:

Free shipping is a powerful tool, but it's not the only trick in the e-commerce bag. Here at We Are Fulfilment, we can help you develop a comprehensive fulfilment strategy that optimises costs, keeps your customers happy, and helps your business thrive.

Ready to unlock the true potential of free shipping? Contact We Are Fulfilment today for a free consultation!

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#fulfilment #ecommerce #freeshipping #marketing

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We Are Fulfilment can help supercharge your eCom with tailored solutions designed for your needs.
Please fill out the information opposite, so we can understand how best we could work with you.

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The We Are Fulfilment team are available weekdays 8am-5pm.

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