![]() ![]() If instead customers see the price of the item AND then shipping for the item AND then sales tax and the final price is several dollars higher than they originally anticipated, they are likely to jump ship. When customers see one price that includes the item and shipping, they are more likely to have a positive feeling. This principle goes back to the consumer behavior saying to “integrate losses.” Integrating losses is important because it is easier on consumers' minds. What looks better to consumers? A $12 item and $3 dollar shipping or a $15 item and free shipping? The offering with free shipping will win 9 times out of 10. ![]() Say you sell COVID-19 facemasks for $12 and shipping costs $3. Roll the cost of shipping into the cost of the product.When deciding your minimum threshold, find the sweet spot that converts more customers and also justifies your costs. You have increased your average order value by $10 and allowed your company room to safely absorb the free shipping cost. Your shopper decides to add a face wash that costs $10. Make the minimum threshold for free shipping $25, then offer the shopper add-ons in the cart that will bring their subtotal above the minimum amount. Say your most popular item is a face lotion that costs $18. Set a minimum threshold for free shipping that is just above the average purchase amount.One offer of free shipping can be a small price to pay in order to be in a shoppers’ inbox for months to come, which will hopefully lead to many more purchases in the future. By capturing a shoppers’ email you then have the ability to send them additional offers and alert them about new products or opportunities. Incentivizing customers to sign up for loyalty programs in trade for free shipping is a no-brainer and a great opportunity to increase the customer lifetime value of a shopper. Offer free shipping to loyalty program members.Here are some tips to help your business make free shipping possible: Moral of the story, customers love free shipping, and they will look elsewhere if it is not offered. 30% of customers will abandon their cart and wait for free shipping to be offered.47% of consumers will search for a coupon code for free shipping.58% of consumers will add more items to their cart to qualify for free shipping.61% of customers are likely to abandon their cart if free shipping is not offered.9 out of 10 customers say that free shipping incentivizes them to shop online more. ![]() On the flip side, we do know that free shipping is an incentive for customers to complete a purchase: Offering free shipping usually means that the shipping costs are being taken from the profit margin on an item and unless free shipping is increasing a company’s volume of sales, it will likely be taking away from the bottom line. However, free shipping is not always financially friendly to companies. Free trial, free sample, and most importantly free shipping are the words that consumers love to hear. ![]()
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