Customers in their city, state, or country may be eligible for free shipping through the platform. Geo-specific: Sometimes eCommerce provides free delivery based on the customer’s location. Offering free delivery throughout the holiday season or on special days, such as Valentine’s Day, is an example of time-based free shipping. Time-based: Time-based sellers offer free shipping for a limited time. But, if you provide free delivery for all of your consumers, then you might fail to identify your loyal customers. Program-based: Here, free shipping is available for those, who become engaged in a certain program, such as a loyalty program. Knowing about some common categories of free shipping models will help your e-commerce site generate more cash: Let’s have a look at the types of free shipping. A free delivery offer resulted in a 48% boost in customer retention.In a 2010 survey, 93% of respondents claimed that free shipping encouraged them to purchase more items online.Furthermore, the company’s average order value (AOV) increased by 7.32%. According to Redoor, orders climbed by 90% with a 96% confidence when clients were given the free shipping offer.According to Brandon Eley, owner of 2 Big Feet, he increased his conversion rate by 50% in 2012 because of free shipping.On the other hand, only 48% of transactions with free delivery were available a year ago.įree shipping offers have been reported to increase sales conversions and revenue, and here are some more reported results about free shipping: There is a lot of statistical data or survey results available that directly support free shipping.Īccording to Business Insider, in the first quarter of 2014, 58% of e-commerce transactions in the United States included free shipping.
As the expectations of customers are rising day by day, so free shipping facilities are rising too.īut what is the motto behind offering free shipping? Does Free Shipping Increase Sales? In this article, we will try to find the answer: Does free shipping increase sales? or not.įree Shipping Increase Sales: If Yes, Then How?įree shipping is a popular option among customers with increased sales. Only 17.5% of online merchants provide free delivery, which is very low. Some online retailers consider free shipping a competitive step for their business, even a few retailers spend their money on free shipping to continue.īut still, many merchants did not pay much attention to the method of free shipping, according to Digital Commerce 360. Free shipping is becoming a more popular option for eCommerce buyers nowadays because it eliminates an additional shipping fee for a customer.
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