According to the latest research in 2024, shoppers shared plenty of reasons for ditching their carts before finishing a purchase. The number one reason that tops the list? Extra costs that are sometimes just too high. We’re talking about those surprise charges for shipping, taxes, and fees. No one likes seeing their total jump at the last second, and that’s why nearly 48% of shoppers say, “Nope,” and bail during checkout!
So, as a business owner, how do you turn things around and keep that 48% from slipping through your fingers? One word: free shipping marketing strategy. Yup, offering free shipping can make a huge difference and keep those shoppers moving all the way to the “Thank you for your purchase” page.
Curious about how free shipping marketing strategy and other tricks can help cut down on cart abandonment and make your customers’ shopping experience smoother? Keep reading! We’ve got you covered!
Why Offering a Free Shipping Marketing Strategy?
Did you know that the global average shopping cart abandonment rate is a jaw-dropping 73%, according to the latest report from Baymard?
That means that only about 27% of shoppers actually pull the trigger on their purchases and go from “just browsing” to “purchase complete.”
When surveyed, users shared a variety of reasons for abandoning their purchases:
- 48% said extra costs were too high (shipping, tax, fees)
- 26% didn’t want to create an account
- 25% didn’t trust the site's security with their credit card information
- 23% thought delivery was too slow
- 22% found the checkout process too long or complicated
- 21% couldn’t see the total cost upfront
- 18% were dissatisfied with the returns policy
- 17% experienced website errors or crashes
- 13% said there weren’t enough payment options
- 9% had their credit card declined
See what I mean? The top complaint, by far, is all those extra fees, with shipping charges often leading the pack. This is where among types of discount in marketing, a free shipping marketing strategy can make all the difference.
Among different types of discount strategies, offering seasonal discounts during holiday periods combined with free shipping can significantly increase your conversion rates
What Is Free Shipping Strategy?
Want to use a free shipping strategy without taking too much of a hit on costs? There are a bunch of tips and tricks to help you make it work, whatever your business goals are. But first, let’s get clear: what exactly does ‘free shipping’ mean? In plain terms, free shipping means free delivery. Simple, right?
Does Free Shipping Increase Sales?
We’ve all been there: browsing online, picking out items, and adding them to the cart. But just when you’re ready to check out, you see those extra shipping fees. Suddenly, it doesn’t seem worth it, and you’re clicking “Cancel” or maybe just abandoning the cart altogether. Frustrating, right?
Now, as a business owner, imagine flipping that scenario. By offering free shipping discount, you create a seamless experience that encourages customers to complete their purchases. It’s a simple change that can boost your sales and grow your customer base.
Sure, there are times when people are okay with paying for shipping, especially if they want their items to arrive ASAP. But outside of those moments, free shipping is almost always a winning strategy that increases your sales!
How to Use Free Shipping: Different Types of Free Shipping Marketing Strategies
If you’re running an online shop or managing your own business, free shipping can be a game-changer! Both for attracting customers and boosting sales. But how should you go about offering it? Here’s the scoop:
You’ve got a couple of solid options when it comes to free shipping strategies. One way is to offer it with no strings attached! yep, that’s what we call unconditional or unlimited free shipping.
or give your customers a fun little challenge to unlock that free shipping bonus and who doesn’t love hitting a goal?
Unlimited or Unconditional Free Shipping
Unconditional free shipping means every customer, no matter what they’re buying, benefits from free shipping. Whether it’s a single egg, a pair of shoes, or the latest digital gadget, they get it delivered without any shipping fees.
Now, before you jump on this idea, let’s get real: if you’re running a smaller store, this strategy might not be the best fit. Why? Because covering those shipping costs for every order can really add up and eat into your profits. This approach is usually better suited for larger retailers who can afford to make free shipping a permanent perk as part of their marketing game.
One great example of an unconditional free shipping marketing strategy is Apple, which offers free shipping on all orders.
Free Shipping When Exceeding a Certain Price
Here’s a more practical approach to offering free shipping as a business owner: set a minimum purchase amount for your customers. For instance, you could offer free shipping on orders over $150. If their order doesn’t hit that mark, they’ll need to cover the shipping costs themselves.
This strategy encourages shoppers to add more items to their cart to reach the free shipping threshold, a win-win for both you and them. But here’s an important heads-up: make sure your minimum spend is reasonable.
If you’re running an online grocery store, for example, setting the minimum at $500 might scare off potential buyers. Keep it balanced so your customers are motivated, not put off.
With Amazon, shoppers can snag free shipping if their order is over $25, even if they’re not a Prime member.
Free Shipping On Certain Products
Free shipping is like an ocean, and with every wave, you can make a smart move that’s a win-win for your business and your customers. It can be a game-changer, but how you use it can make all the difference.
One smart move is to offer free shipping on specific items or products. This way, you can highlight particular merchandise without putting your entire product line on the hook for shipping costs. Offering free shipping on specific products can help promote new launches, similar to flash sales, where time-limited deals create urgency and boost sales.
Picture this: you’ve got a new product launch, and you’re itching to draw customers’ eyes to it. Offering free shipping on that product can create a buzz and drive more sales. Or, say you have items with a limited expiry date; free shipping could be the nudge that convinces buyers to hit ‘Add to Cart.’
But here’s the thing: managing free shipping for only select products can be a bit of a balancing act, and you’ve gotta weigh your financial goals carefully.
Take Sephora, for instance, they'll sometimes offer free shipping on specific beauty products.
Free Shipping on Seasonal, Holidays or Promotional Events
Free shipping isn’t just a nice-to-have; it’s a major factor in consumer decisions, especially during holiday shopping. Did you know that 85% of shoppers actually prefer free shipping over faster delivery options? That’s pretty huge when you’re looking to grab attention and boost huge sales during peak periods like Black Friday, New Year’s, or even Valentine’s Day.
But here’s the catch: these big shopping events are short-term bursts. Relying solely on free shipping during special occasions won’t necessarily hook long-term customers.
And another heads-up: when it comes to peak seasons like Christmas, delivery costs can creep up. High demand and, sometimes weather condition can push up shipping prices. Make sure to plan ahead so that offering free shipping doesn’t eat into your profits.
Many brands, from small businesses to popular names like Amazon, Walmart, and Sephora, offer free shipping during holiday events.
For more discount marketing ideas on Halloween or discount pricing strategies on BFCM, read our complete guide.
Free Shipping For Paid Membership and Subscription Services
As an online shop owner or business owner, you deal with all kinds of customers and offer a range of services to meet their needs. But let’s be honest; not all customers are the same. You know those loyal ones who keep coming back, sign up for your paid memberships, and stick with your subscription services? They’re the real MVPs, right?
So, how do you show them they’re a cut above the rest and keep that loyalty strong?
A great way to show your appreciation and boost your brand’s reputation is to offer them free shipping. It’s a simple gesture, but it makes those top-tier customers feel valued and special. And who doesn’t love feeling special?
You’ve probably heard of Amazon Prime, Amazon’s paid subscription service. Benefits of free shipping for customers include fast deliveries plus extras like streaming, reading, and other exclusive features. It's like having a little extra VIP treatment for all things on Amazon!
Free Shipping for First-Time Customers
When it comes to making that first purchase, offering free shipping is one of the smartest moves you can make to reel in new customers and break down those barriers to conversion!
As the name suggests, free shipping for first-time customers means they don’t have to pay for delivery when they make their first buy from you. It’s not only boosts your conversion rate but also gives you the perfect opportunity to gather valuable data on these new customers, setting the stage for more personalized and effective marketing down the road.
Like other free shipping strategies, this one can take a bite out of your profit margin. Plus, if customers start getting used to it, they might come to expect free shipping as the standard.
Take DoorDash, for example; new customers can enjoy a $0 delivery fee on their first order just by signing up!
Free Shipping for Returning Items
Want to create a better experience for your customers and give them some peace of mind? Offering free shipping on returned items can be a great way to do just that! But like most good things, it’s important to do it the right way to ensure it benefits both your customers and your business.
First off, make sure you set clear rules: like a specific timeframe for returns and ensuring items come back in their original condition. These guidelines can help keep the process smooth for both sides.
Now, let’s get real: free return shipping isn’t always the best fit for every business. For instance, if your store deals with heavy or oversized products or if you’re a smaller business running on tight margins, those extra costs could put a dent in your bottom line pretty fast.
Clothing and footwear brands offer free returns like Nordstrom, Zappos, and H&M are great examples that offers their customers to shop with confidence and hassle-free returns if things don’t work out.
Factors to Consider Before Using Free Shipping Marketing Strategy
You know what they say: nothing in life is truly free, not even “free” shipping! So, if you’re a business owner thinking about adding free shipping to your offerings, there are a few key things to keep in mind to make sure it doesn’t chip away at your profits:
Calculate profit margins and include shipping costs in product prices to avoid losses.
Set a reasonable minimum order amount to qualify for free shipping and encourage larger purchases.
If you use multiple branches or physical stores, deliver from the closest location and reduce shipping costs.
Ensure free shipping aligns with your business goals to attract customers without sacrificing profits.
Final Thoughts: What Is the Best Free Shipping Marketing Strategy?
I know you probably found this article while searching for the best free shipping marketing strategy. And even as you’re reading, you might still be wondering, “what is the best free shipping marketing strategy?”
Well, it’s kinda like asking, “What’s the best car?” It depends! Do you need a car just for road trips, or are you mainly driving around town? Same deal here: there’s no one-size-fits-all answer. The best free shipping strategy will depend on what works best for your business and your customers. For example, offering free returns can be a sweet deal for a fashion retailer! Who doesn’t want to try before they buy? But for a low-margin electronics store, covering return shipping could totally eat up their slim profits. It all depends on the type of product and how much wiggle room there is in the profit margins!
You might even consider combining it with other types of marketing discounts to boost your profits! And that's exactly why we're here. At Discounty, we offer a range of marketing discounts designed to put your business on top. Whether you’re looking to attract new customers, retain loyal ones, or simply maximize your revenue, Discounty has the right mix of discounts to help you succeed.
