Shipping costs for product based online stores are a killer. The worst! Your customers are finding your products, your prices are great, but when they go to check out, the cost seems to double because of shipping. That sale is now an abandoned cart. Scientists refer to that as a problem. Here’s a way you can fix it.
It’s almost impossible for most small businesses to keep up with the Amazon’s and Walmart’s who are big enough to not charge for shipping. So how can you compete? One way to entice clients (and still turn a profit) is to try a free shipping cap range. If you can offer no additional charges for shipping and still make a profit when a client spends a set amount it can be a win-win.
How free shipping can work to your advantage
Like everybody, a client we’re working with needed help boosting sales. We could tell by the number of people who bailed on their check out page that the issue was shipping costs. Sometimes the shipping was more than the actual products.
We knew offering free shipping across the board, wasn’t an option for them. It was just too costly. So, we suggested trying a set minimum order cap and included free shipping once users spend that amount. The client crunched the numbers and liked the idea.
The client informed us their average order was around $20-30. They suggested order minimum and we ran the new free shipping offer. After a couple weeks there was little change. We adjusted the order minimum by 20% lower and discovered the happy medium.
After sending out another email campaign promoting the new offer, sales picked way up, and in their past 50 orders, 43 of them were at least $50 (the free shipping cap we set). That tripled their monthly revenue and still turned a solid profit and kept clients happy by offering free shipping. Free shipping can work for you, you just need to find the right balance.