Welcome to Parcelconsulting
Welcome to Parcelconsulting
In today’s ecommerce landscape, it’s hard to stand out from the competition. There are millions of merchants, many of whom sell the same products, and too many choices for consumers to make a proper decision. This is why it is critical to offer a unique value proposition and make it clear where shoppers should be making their purchases.
You only need to make one change to attract shoppers, improve customer loyalty and boost your bottom line: offering free shipping. The service seems on the surface like a profit-eater, but it will do wonders for your business.
Here’s why you should absolutely offer free shipping.
There are three ways to offer free shipping that will not affect your profits long-term.
The first is to set a free shipping threshold, whether in terms of spend or quantity, that customers must meet or exceed to “unlock” the offer.
The second is to build shipping costs into the price of each product, so customers pay to ship even if they don’t realize it.
Finally, sellers can capitalize on consumer FOMO (fear of missing out) and host limited time free shipping events to spur sales during slow seasons. All these tactics increase sales and revenue because they attract consumers looking to skip the shipping fees when shopping online.
Though there are no official studies linking free shipping and customer retention, marketers have discovered correlation based on a comScore and UPS study. The research reveals that 54% of shoppers are likely to make a purchase when they receive emails with a free shipping offer, meaning two things.
For one, the respondents were email subscribers, so they are likely previous customers who opted into marketing messages.
Secondly, the free shipping offer was compelling enough for them to take action.
High shipping costs are consistently the top driver of cart abandonment, so it is safe to say that shoppers do not tolerate paying exorbitant amounts to get their orders delivered. They’re not only avoiding these businesses—they’re flocking to the brands that offer free shipping instead. Of all the small to mid-sized businesses tracked in a recent study, 46.5% of them increased their profits just by offering free shipping.
Average order value is a key performance indicator for ecommerce, and you can increase it by implementing free shipping. HubSpot found that 24% of shoppers will add more items to their carts, ultimately spending more, to unlock free shipping.
Though 24% of consumers are willing to spend more to qualify for free shipping, 58% will take some sort of action to get it. This can include subscribing to an email list, paying a monthly or yearly fee or something else in that realm. Consumers will go to great lengths to unlock free shipping, and savvy sellers take advantage.
Online shoppers are almost always looking for a deal, and the availability of products from multiple sellers at a time means the most competitive price will win.
Oftentimes, the best bargains appear on marketplace listings because marketplace sellers generate enough revenue to afford to sell at the lowest prices and offer free shipping to boot.
Shoppers flock to marketplaces like Amazon, eBay and others for this very reason. After costs, the top reasons they visit those sites are related to shipping—it’s fast and it’s free, or at least discounted.
Holiday shopping is just around the corner, and consumers will be on the lookout for two things: Low prices and free shipping. While the rest of the year is dedicated to seeking out free and easy shipping, price consciousness rules the holiday season, likely due to the volume of gifts being purchased. This bumps free shipping down to second place on consumers’ most-wanted lists, but it is still hugely important to offer to attract shoppers during this festive time.
The ecommerce industry has reached $4.2 trillion, so it is perfectly reasonable to deduce that everyone is now shopping online.
While it may come as a surprise to learn that there are still millions of consumers who prefer to shop in physical stores for a variety of reasons. One of the main draws of in-store shopping is the lack of shipping fees, per recent Walker Sands research.
In fact, the findings state that 79% of US shoppers see shipping fees as an obstacle and would be far more likely to shop online if shipping was free.
Ecommerce businesses that use email marketing see an ROI of up to 300%, so there is no question whether this is a powerful tool.
Emails are a direct line to the customer that can help build relationships, and subscribers get exclusive access and offers in exchange for signing up. Oftentimes, they’re looking for free shipping.
Per Adestra findings, free shipping is the second most popular email offer with 20% ranking this as their top choice. The only offer ahead of it was clearance and sales events with 35% of shoppers hoping to receive notice of these promotions.
Believe it or not, some shoppers will choose free over fast when it comes to shipping.
UPS research found the average shopper will wait up to eight days for delivery if shipping is free, and 80% of them actively seek free shipping.
This means you can opt for slower shipping that is more cost friendly. Saving on shipping costs for one customer segment also opens your options so you can easily offer same-day or next-day delivery for the customers who choose fast over free.
In order, these are the most important factors that shoppers are looking for when determining where to make a purchase: free shipping, hassle-free shipping and low-cost (or free) returns. Simply put, you should absolutely offer free shipping. That’s what will convince shoppers to buy from your store.
Parcel Consulting was started with a simple mission in mind: Connect end shippers with the best carrier and rate strategy for their needs and the best software options to streamline, automate and improve the accuracy and efficiency of the daily pick, pack, and label-printing process for their business.
We work with many different carriers and software partners, so that we can recommend the best solution based on more than a decade of actual experience with all these providers.
Most people, even those experienced in shipping and logistics, are surprised to find out how many new and innovative carriers and software options exist now.
We have been tracking, comparing and evaluating them objectively for more than 10 years and we freely share our personal review of your shipping needs by simply scheduling a phone call or video conference with one of our experienced shipping consultants.
We’ve been preparing for this for more than a decade and we’re here to help! Give us a ring to discuss your options at: 833-PARCEL-1 (833-727-2351).
