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How to Offer Free Shipping Method for Your Online Store

Posted by Sam



Your customer's dream is to try your product and return it without cost. The lack of free shipping feature is a major obstacle to e-commerce. It would be hesitated to buy a product online without touch the product. Don't you?

For example, if you would like to buy a clothing product, you neet to know whether it is made a soft or stiff materials. Surely you do not want to buy things that are not going to wear. Free shipping method makes your customer delight, but behind it, if you have an online store, it is a nightmare you are trying to avoid.

Here are a few ways to realize it:

1. "Free Returns" Provision Can Actually Boost Your Profit

Your results may vary, most of the largest online stores have experienced sales increase up to 357% since implementing the unconditional free return provision to the online store. You probably thought that if you are being fair by giving them free shipping for any item they don't like, then they would think that your online store is a good store to shop online.

But, the same study shows a different result in reality. But the most important is you need to make sure that you are not blacklisted by your customers, but you also have to reduce the number of sales of such products in the future.

2. Do You Really Need to Know The numbers?

If you do, you should calculate the profit margin you'll get after adding up the total amount of the shipping cost.

3. Ways to Make a Free Shipping Method Works Good

After you making sure the details as shown at the calculator figure above, you may be surprised to see your profit is lower than before. You'll need to increase your profit and also offer a free shipping method in the same time.

Below are good ways to increase your margin:

  • Set the minimum order value. Amazon did it before the Amazon Prime arised. They set the minimum order to $25 to get free shipping. Set the minimum order value by calculating the average order value, average shipping cost, and gross profit margin.
  • Start with the value of minimum chart. Then, subtract the average order value. Take that number and multiply it by your gross profit margin number. Then subtract that number with the shipping cost. Repeat this until you get the right minimum order value.
  • Offer free shipping method during holidays or limited time promotions.
  • Give free shipping offer only on the products with high-margin value.
  • Give free shipping offer on customers who are subscribe to your email list. This works well because you make a long-term profit to the people on your email list. Think of this list as valuable as gold.
  • Make your customers to pay for the free shipping. You do this by offering free shipping to everyone. But need also to offer the "rush-shipping" option. For additional fee, the customers can get their products a day or two days earlier. You also need to pack and send their goods with priority.
Win-Win Solution Makes You Online Store Profitable

If you can give your customers free shipping method, do it. This way requires a bit calculation. Your online store will be much more profitable and your customers will be satisfied after being offered a free shipping.


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