In today’s era, there is cutthroat competition between online shopping apps. So, to attract customers you need something different which is good and exciting to offer. Online retailers can go for a free shipping and even a same day delivery option. Though there is some cost connected with this feature it can give you numerous benefits. Amazon was the first company to use the free shipping feature which was not much popular at that time and not every seller adopted this technique. But with time as the scale increases, it has become beneficial and common for sellers.
There are many benefits to free shipping: –
- Free shipping increases the value of orders- the free shipping feature has increased the overall sales of many companies because customers are willing to buy the products if they need not pay the shipping charges. So as revenue increases it directly increases the value of the order. There is a certain limit of orders to avail free shipping benefit so maximum customers buy things just to avail the benefit of free shipping. This is how the size of orders increases directly with the free shipping option.
- Suppliers can control the cost of free shipping- online retailers that are in the same business line and are selling the same product which is commonly available with other online retailers also suffers a huge loss. Because to get customers for the product or service, they lower down the original price of the product sometimes, they set the process less than the actual cost of the product just to have more market share. In such situations, online suppliers feel helpless and face losses. This situation is not there in the case of free shipping. Suppliers can control the cost of free shipping.
- Permanent customers like free shipping- it is believed that free shipping helps online retailers in getting permanent customers. It is a very good tool to use to retain the customers to yourself. Online retailers believe that there is some relationship between the retention of customers and giving them free shipping. When the customers get a free shipping option, they become curious to buy something to avail themselves of the benefit.
- Increase in sales due to free shipping- shoppers get excited to avail frees shipping. To avail of free shipping sometimes they buy products that are not required by shoppers at a particular point in time. In this way, it increases the revenue of the firm. Sometimes payment shipment proves beneficial for customers in case they need the product in urgency. So, to get the product, customers readily pay the shipment amount. But this is not true in all situations. Given the choice to buy products free of shipment or to buy a product with shipment charges, customers will always prefer the free shipping option.
- Attract more customers- this is the assumption of many small business firms that free shipping is costly and their company is in no position to afford such expenses. But if you get in contact with a good delivery partner, then you can save a lot of cost for delivery and add more customers to your company. In this way, you can bear the cost of delivery services.
In this article, you will get to know all the benefits of free shipping. Check out the guide to know the details.