Tuesday, December 30, 2014

How to Profit by Offering Free Shipping

Studies show that nearly 80% of consumers believe free shipping is essential to their purchase decisions, leading them to spend on average 30% more per order. For many retailers, the word free means less profit, but by carefully incorporating free shipping into your business strategy, you can ensure three things: customer satisfaction, higher conversion rates and a competitive edge over the competition.

A recent article from KISSmetrics highlights ways for retailers to actually make money by offering free shipping onsite, highlighting 4 tests that any eCommerce business can run: 
  1. Establishing a baseline
  2. Creating thresholds
  3. Setting restrictions
  4. Enacting price increases 

Read the entire article, "How to Make Free Shipping Profitable" to learn how free shipping can prove beneficial to your eCommerce business and how to setup your testing. 

Other sources: