Free shipping: when to offer this benefit to your customer?

Discover the advantages of the strategy and discover how to use it without compromising your profitability.

Offering free shipping is attractive and can help boost your sales, even since last year, stores have invested in this strategy. In 2021, according to Webshoppers, 50% of online purchases had the benefit, an increase of 7% when compared to the same period before.

Also according to the survey, 78% of consumers say that the preferred form of promotion is free shipping, while 23% said that a discount on the value is already an advantage. In addition, more than half of people point to free delivery as a motivator to purchase, while 55% have already abandoned their cart because of high prices.

However, the advantage of offering free shipping is not only limited to attracting customers, but also to a positive shopping experience, as it reduces complaints and increases brand engagement, earning more spontaneous recommendations.

What are the benefits of offering free shipping? 

Free shipping is an advantage, both for those who buy and for those who sell, as it offers a good cost-benefit to the consumer, helping your virtual store to gain the trust of consumers and, later, work with actions that favor loyalty.

In practice, your store has several advantages, such as:

  • Competitive advantage;
  • Customer loyalty;
  • Decreased dropouts;
  • Increased satisfaction;
  • Improved stagnant sales;
  • Increase in traffic;
  • Higher sales conversion.

How to offer free shipping without prejudice? 

Before establishing your plan of action, it is important to know who will pay the bill. Therefore, you need to make choices about the transfer of values, seeking to avoid any financial loss. Therefore, you have some options, such as increasing the price of products or negotiating better conditions with suppliers to reduce your costs.

It is worth remembering that the benefit does not have to become an obligation, but can be used as a differential, in times of increased demand, such as commemorative dates or, then, strategically to move idle stock or even a solution to circumvent a period of low sales.

Some points that can be studied are:

  • Evaluate the costs;
  • Define the purpose of the offer;
  • Analyze geographic issues;
  • Imposing a minimum purchase amount;
  • Observe the products that will participate in the offer.

What are the ways to offer free shipping? 

To determine when and how to offer free shipping, it is essential that you evaluate production and logistics costs, the contract with suppliers, your company’s average ticket and your profit margin.

In this way, you close the accounts and determine if it is possible to guarantee the gratuity. It is also important to analyze the benefits policy offered by your competitors and define an objective for the adoption of the strategy, for example, attracting new customers, retaining old ones, increasing your average ticket or even surpassing the competition.

When defining the objective, it will be easier to decide the best strategy to adopt.

What is the best?

There are many options for strategies to be adopted and here are some suggestions.
Free shipping with a minimum number of products in the cart or minimum purchase amount: it will help you increase the store’s average ticket, by requiring a minimum purchase, with an amount slightly above what customers usually do.

  1.   Free shipping on specific products : it helps to sell products with less output or that have been in stock for a long time, and can also be a way to beat the competition in a specific niche. Or you can choose which products will have the discount according to their weight and dimensions.
  2.   Free Shipping to Specific Locations : As Brazil is so large, offering free nationwide delivery can be tricky. Then, your company can use this strategy to conquer specific markets or to retain customers in a certain location.
  3.   Free shipping on first purchase: it is a strategy to attract new customers and generate a positive purchase journey from the first contact. You can link the granting of the discount to a previous registration, thus increasing your database.
  4.   Anniversaries : in addition to bringing the idea of ​​giving the customer a gift, this strategy can help increase your seasonal sales. In addition, it is already a very common practice in the market, so consumers can choose to buy on specific dates, already expecting the benefit.

Use free shipping to make your store more competitive

Free shipping can be a strategy to ensure more competitiveness in the market. Thus, it is possible to plan for commemorative dates, create exclusive offers and attract more customers without compromising your profit margin.

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