Free Shipping Without Losing Your Profits!! The Best Method to follow PowerPoint PPT Presentation

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Title: Free Shipping Without Losing Your Profits!! The Best Method to follow


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Free Shipping Without Losing Your Profits!! The
Best Method to follow
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Free shipping not only benefits the consumers but
also many retailers have experienced benefits,
including a sharp increase in sales and customer
retention which outweigh the costs in the long
run. Free shipping is one of the ways you can
attract visitors to your site.
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There are various ways which you can use to
facilitate free shipping for your customers
without losing your own profits are
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  • Restricted Time Free Shipping
  • This can be a smart trigger to boost your sales
    by providing a short window for free delivery of
    products. You can also offer free shipping on
    specific days or hours. Use the holiday season
    for providing free shipping as this is the time
    most people shop in bulk. Like a flash sale,
    where you create excitement for the consumers by
    giving them free delivery without capping the
    price.

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2. Limited order capping for free shipping For
example, free shipping is available on orders
over 50, a customer who has 49.99 or less in
their shopping cart will surely purchase an
additional item to get the deal. Gather
information about your average order price from
past purchases and use it to your advantages.
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3. Provide a flat shipping rate Keep a flat
shipping rate and let the customer know
before-hand. A consumer expects to know that cost
they are likely to pay for their shopping. A
sudden change in pricing while shopping online is
the surest way to scare away your customers. This
will ensure transparency and will build trust
with your consumers.
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4. Target your best customers 
Do not open your free shipping for the masses,
instead target a select group of customers you
can email to increase lifetime value. Have a
loyalty or rewards program in which you offer
free shipping for those customers only. This will
enhance your customer relationships and will make
them feel valuable.
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5. Use a one-time fee 
Amazon has nailed it perfectly. With Amazon Prime
membership, the consumer only pays a one- time
fee for premium shipping services throughout the
year. This entices customer loyalty as well when
they receive unlimited free two-day shipping at
no additional cost.
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  • 6. Offer free shipping on special products
  • You can offer free shipping on products with
    higher profit margins, on products where you have
    excess inventory or any special item youre
    looking to promote.

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7. Reduce your overall shipping costs 
Work with your freight carriers and come up with
a flat rate to ensure saving on your shipping.
This will help you to keep up your profit margins
and not impact your services as well. Customer
will also be happy with the low cost of shipping
or free shipping offered on their purchases.
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  • 8. Hide the Shipping Cost in Price
  • Including the shipping cost in the price of the
    product can also save you. If your product
    becomes too expensive after adding the shipping
    cost to it, you can make it part and still make a
    profit.
  • Click here read next ways -

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Know How to pay for free shipping ??
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If you are applying the above methods and
providing a free shipping service to your
customer, who is paying the shipping cost?
Someone must bear the cost of the delivery and
therefore, you should consider the following-
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  • a) Market free shipping-
  • Create awareness about your free shipping service
    to your customers to make use of the option.
    Entice them by printing it with every promotion
    and let your customers know about it well in
    advance.

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b) Factor shipping into operation and
pricing- Check the shipping costs from the
initial stage itself and include it your
financial model. Consider the inventory for it.
c) Market free shipping  Create awareness
about your free shipping service to your
customers to make use of the option. Entice them
by printing it with every promotion and let your
customers know about it well in advance.
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d) Focus on up-sells and cross-sells  When more
items are added to the cart, it reduces the
shipping cost tremendously. Selling complimentary
items also becomes easy with free shipping. e)
Free shipping is also a long-term play Loyal
customers will keep your business going and you
can keep using the shipping services from your
vendor and creating a win-win situation for all
parties involved. Long-term business rates differ
from short-term rates. Sacrifice the short-term
loss for a big-time payoff by establishing a
relationship with your vendor to reduce the
shipping cost. You can also avail detailed advice
and consultation from the experts at WebBee
Global which is known for their impeccable
services in the e-commerce world. They cater to
clients across the globe and have separate
development teams for different technologies and
e-commerce platforms.
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