With the shift in shopping trends among customers, online shopping is becoming popular. This is convenient as the products they wish to buy are delivered at their doorstep. Also, retailers stand benefitted as they do not need to have brick and mortar stores, thereby reducing the expenses incurred significantly.
Customers are being attracted and pushed to purchase more from online retailers by providing them with attractive discounts and at times, free shipping too! However, it has been found that customers actually end up shopping more when are tempted with free shipping.
As per a recent study, it was found that customers shopped 20-30% more than average when it was under the free shipping. Thus, by not passing on the cost of shipping to customers, online retailers are found to have made greater business. Also, providing attractive offers such as “Free Shipping for all orders over $50” etc. would further push the customer to shop for $50, which would help retailers to increase their business greatly as customers would indulge in shopping for over $50.
If you have an online business and wish to increase your sales, probably the best method would be to set a certain amount above which all orders would be shipped for free. Companies have also reported a double digit growth ever since they have started offering free shipping. Hence, it is best recommended to set up an effective method for reducing the shipping costs so that they can have their business grow and achieve better profits.
This said, it is recommended for all online retailers that they try the free shipping policy for brief period of time, as it is found to have been more profitable and the overall sales would increase to a great extent, thereby making retailers have better profit levels comparatively.