How to improve your conversion rates with free shipping
Step 1: Consider whether to attract your buyers by offering a discount or a free shipping option
- If you’re thinking of offering both a discount AND free shipping to attract more buyers, ask yourself the following questions:
- Can you really afford it? How will it affect your margins long-term? If your product is too cheap, won’t your potential customers be wary about its quality?
- In some cases, the most sensible solution may be the free shipping option only.
- Roughly 61% of consumers are willing to cancel their order if free shipping is not included in the offer.
- The word free works like a psychological trick that can increase the likelihood of finalising a purchase immensely.
- Make sure your free shipping policy is a well thought out strategy that will bring you the desired benefits. Pricing and marketing are of utmost importance here.
- Read the article Free shipping: your marketing tool & online sales booster.
- Consider various shipping solutions offered by Cross-Border Trade providers.
- For instance, WI Shipping Service (WISS), ideal for eCommerce entrepreneurs wanting to manage international shipments across multiple platforms (e.g., eBay, Amazon, your own online store). A single WISS interface is full of features that make shipping convenient and hassle-free (sellers can for instance print labels, set box sizes, shipment type and pickup locations or contact a single point of support)
Buyers spend more when free shipping is available. Free shipping gives them the illusion of choice and works well from a psychological perspective. Reflect it in your marketing strategies and stress the benefits of free delivery.
Step 2: Nudge the buyer away from ordering either too much or too little
- Set thresholds and prices. You can offer free shipping when:
- Customers buy smaller quantities with greater frequency: perfect if you want your consumers to visit your website more regularly.
- Customers buy larger quantities: perfect if you want them to shop with you more.
- Motivate buyers to buy more from you.
- Offer free shipping when consumers spend a certain amount of money on products from your shop.
- Adjust free shipping thresholds, depending on the quantities that will help your business keep shipping costs down.
Take into account your business objectives, what your company can afford and whether you want your consumer to buy larger or smaller quantities. For example, some companies may prefer to receive smaller orders, which reduces order processing costs.
Step 3: Think of adding the ‘FREE international shipping option’ if you sell on foreign markets
- Consider making the FREE international shipping your unique selling point.
- Make sure that you provide a free service, but also a reliable one.
- Make sure the shipping fee includes final costs. Avoid surprising buyers with unexpected costs.
- According to Statista, 56% of online buyers leave without paying when faced with unexpected costs.
- Take into account taxes, e.g. VAT, sales tax. Stay aware of the complete cost of international logistics.
- Take special care of packaging
- Ensure the products are safely and securely packed.
- Keep in mind that goods crossing borders are likely to be subjected to inspection.
- Display costs / prices in the customer’s currency.
- Test it first to see if customers want to buy your product and whether the profits are satisfactory for you.
If you’re an international online seller offering free or cost-effective shipping options to any address anywhere in the world, think of the competitive advantage it gives you. Think of the impression it will make on international buyers who can order items from around the world for free. This way Luxy has a leg up on their competitors and can continue to succeed both domestically and internationally. This way they’re likely to order more and recommend you to their friends.