How to Increase Profits by Offering Free Shipping
Small businesses shipping parcels and pallets are looking for ways to stand out in the eCommerce industry. They need to cater to customers who require both large and small shipments. Offering free shipping is popular, but it can be costly, and small businesses must be strategic to ensure that the benefits outweigh the costs. Without careful management, free shipping can become a financial burden due to increased overhead. Smartly offering free shipping can improve customer satisfaction and increase profits. Finding the right balance is crucial. This article explores effective tactics for small businesses to offer free shipping and increase profits in today’s competitive market.
Utilize Order Minimums
Offering free shipping is a proven tactic that works for multiple reasons. Studies show that when customers are offered free shipping on orders above a certain dollar value, they tend to increase their order size to qualify. In fact, 48% of consumers will buy more to avoid paying for shipping. This tactic not only motivates customers to spend more on a single purchase, but also encourages customer loyalty, resulting in repeat business with a higher average order value (AOV). This can help to reduce your shipping costs, as customers are more likely to place larger individual orders rather than multiple smaller ones.
Include Free Shipping as a Loyalty Perk
Customer retention is a top concern for businesses, especially in a saturated market with numerous options available. To make customers feel valued and loyal to your brand, offering free shipping as a loyalty perk can come in various forms. One way is to offer free shipping on a customer’s milestone orders, such as every fifth, tenth, or twentieth order. This encourages repeat business and provides opportunities for further marketing and conversions. Additionally, free shipping as a loyalty perk can be combined with the order minimum technique.
Offer Free Shipping for a Limited Time
Small businesses may not be able to offer ongoing free shipping due to cost, but there is an alternative. Limited-time free shipping can be used to increase conversions and serve as a marketing tool during holidays or other promotional periods. Customers are incentivized to make purchases in the moment due to the sense of urgency created by the offer. Limited-time free shipping can also be used as a loyalty perk for customers on mailing lists, encouraging retention and higher average order values.
Free Shipping Made Affordable with Milestime
Offering free shipping to customers is a proven strategy to boost sales and retain customers. However, for small businesses, it can be challenging to make free shipping cost-effective. That’s where Milestime comes in. Milestime is a comprehensive shipping management platform that offers discounted rates on both parcel and LTL shipping from top carriers across North America. By using Milestime, businesses can get real-time shipping rates, book shipments, and track them all in one place. This saves time and money by eliminating the need to browse multiple carrier websites or deal with hidden fees. With Milestime, businesses can offer free shipping to their customers without incurring significant overhead costs. By getting access to discounted shipping rates, businesses can lower their shipping expenses and increase their profit margins. This makes it easier for businesses to attract and retain customers by offering free shipping as a value-added service.
So, if you’re looking for an affordable way to offer free shipping to your customers, Milestime is the solution you need. Contact Milestime today and start providing your customers with the best shipping experience while saving money on shipping costs.