Use Free Shipping to Skyrocket Your Online Sales
by Veronica Stone on December 21st, 2007
As Internet companies pick up the pace in shipping products around the world, a few are using free shipping to boost online business. Not many companies can afford to offer unconditional free shipping to every customer. But just like many others, free shipping offers that are conditional can boost your business and help you gain new customers.
Free Shipping with a First-Time Purchase
The "lose profits now to gain future profits" philosophy applies when you offer free shipping to first-time customers. This offer gives customers an opportunity to buy a product risk-free (when it comes to shipping). You carry the burden of shipping costs for their first purchase to hopefully gain a repeat customer for life. You should only offer free shipping under these terms if the following apply:
a. You are able to afford the shipping costs on first-time purchases. This will only work if your products are lightweight and small in size. If your products are heavy and will cost a lot to ship, you should consider another type of offer.
b. You anticipate your customers to shop with you frequently, at least once every few months.
c. You plan to follow up with your customers to encourage other purchases through promotion, email updates, up-selling, etc.
Free Shipping with a Purchase Valued at $_____ or More
You can also offer free shipping with the purchase of products priced at certain dollar amounts or with combined purchases that reach that amount or more. This will work great if your profit margin is enough to cover the costs of shipping for your higher-priced products. This free shipping offer can encourage higher-priced purchases and encourage buyers to place more items in their shopping cart.
Free Shipping During Special Sales and Events
Another way to leverage free shipping is to offer it only during special sales and events. These might be special holidays, end-of-the-year sales, incentive sales, etc. There are numerous ways to incorporate free shipping offers into any sales event.
Cover All Bases
When offering free shipping, promote it carefully. Be sure to specify on your website the details of your offer and any stipulations of the offer. List the requirements one must meet to receive the free shipping. Also, mention your policy on international shipping. If the customer will be charged for shipping on additional items they purchase, be sure this is stated in your offer as well. Write a disclaimer to include on your site. It’s better to be safe than sorry.
Free shipping offers can dramatically increase your Internet profits, so get creative with free shipping ideas and watch your online business soar.
