{"id":218118,"date":"2019-12-31T08:22:26","date_gmt":"2019-12-31T08:22:26","guid":{"rendered":"https:\/\/webkul.com\/blog\/?p=218118"},"modified":"2019-12-31T09:02:06","modified_gmt":"2019-12-31T09:02:06","slug":"quick-guide-to-offer-free-shipping-maintaining-profit-margin","status":"publish","type":"post","link":"https:\/\/webkul.com\/blog\/quick-guide-to-offer-free-shipping-maintaining-profit-margin\/","title":{"rendered":"Quick Guide to Offer Free Shipping (+ Maintaining Profit Margin)"},"content":{"rendered":"\n

Finally, decided to buy that one product I was eyeing for a while now. With thrill added it to the cart, hit that checkout button. And there it is, one that makes the eye roll; shipping charge<\/strong>!<\/p>\n\n\n\n

Next?
Press ctrl+w & wait for the site to have a free shipping scheme.<\/p>\n\n\n\n

A lot of you can relate, right? <\/p>\n\n\n\n

Access to click & collect technology, anytime-anything-anywhere delivery & of course, Amazon Prime. Buy in-store, get it delivered at your door-steps or maybe buy online & pick-up in store<\/a>. <\/p>\n\n\n\n

All these factors contributing to make the shopping experience more centralized has somehow lifted the customer expectations. One such expectation is free shipping<\/strong>. <\/p>\n\n\n\n

As a store owner, free shipping is a great way to reassure customers towards your brand. Moreover, it’s quoted by ShipStaion<\/a>:<\/p>\n\n\n\n

Customers overwhelmingly prefer slower, free shipping when purchasing for themselves, but they are 76% more likely<\/strong> to pay for express shipping when buying gifts.<\/p>\n\n\n\n

So, in a world of ‘You get what you pay<\/strong>‘, free shipping is more of a default slower option. Whereas, when customers pay for the delivery, they expect it to be super soon. Thus, making it a premium option, just like what Amazon is doing with its prime membership. <\/p>\n\n\n\n

\"free<\/figure>\n\n\n\n

Nevertheless, it is proved that pulling out shipping costs can help you reduce abandoned cart rates. Moreover, having various shipping options also influence conversion rates.<\/p>\n\n\n\n

Offering Free Shipping<\/span><\/h2>\n\n\n\n

Free shipping comes with a cost. So, if you aren’t aware enough, it can also kill your profit margins.<\/p>\n\n\n\n

Let’s look into the four ways you can incorporate free shipping in your eCommerce store.<\/p>\n\n\n\n

Injecting Shipping Cost in the Product’s Price<\/h2>\n\n\n\n

Buying a product for $10 with an extra shipping cost of $2 looks like a lot whereas, buying a product for $12 with free shipping always seems to be a good deal.<\/p>\n\n\n\n

Large online marketplaces such as Amazon and eBay have started pushing their sellers to include shipping costs in the purchase price. A smart way to save your customers from the fear of shipping cost & on the other hand, saving your profit margin.<\/p>\n\n\n\n

Offering Free Shipping above a set threshold<\/h2>\n\n\n\n

Another great & effective way is to provide free shipping above a set order amount. For example, providing no shipping charges on orders above $20. This makes customers to at least buy something of worth $20 to save those extra pennies. <\/p>\n\n\n\n

This is a widely used technique and is doing absolutely well in the market. What’s great is that this is just another way to pump up your store’s average order value.<\/p>\n\n\n\n

Implementing Membership Plans<\/h2>\n\n\n\n

Provide free shipping to your loyal customers<\/a>. <\/p>\n\n\n\n

Amazon is one such marketplace that’s implementing the technique very well. Join their Prime Membership and get free, two-day shipping. <\/p>\n\n\n\n

You charge your customers to join your one-year membership<\/a> program. In the program, you offer them free shipping & other facilities. Psychologically, those customers will somehow be bound to make multiple purchases from your website since they have the membership & want to utilize it as much as possible.<\/p>\n\n\n\n

Ultimately revving up your sales rate<\/strong>, average order value<\/a><\/strong>, and repeat customer rate<\/strong>!<\/p>\n\n\n\n

Bonus Point: Use the left-digit effect<\/h2>\n\n\n\n

The left-digit effect is most commonly practiced these days. It’s more of a psychological trick. If you don’t know, let’s see what it actually is:<\/p>\n\n\n\n

You might have seen everything priced $39.99, $29.99, or $19.99? More specifically, all the product prices ending with “.99”.  This is called charm pricing<\/strong>. <\/p>\n\n\n\n

Charm pricing is most effective when the left digit changes. A one-cent difference between $3.80 and $3.79 won\u2019t matter. However, a one-cent difference between $3.00 and $2.99 will make a huge difference.<\/p>\n\n\n\n

Our brains encode numbers so quickly and identify it’s weight even before reading. So, using this technique for your store’s product price & shipping cost can help you with the conversion rate.<\/p>\n\n\n\n

Check out Gumroad\u2019s<\/a> sales:<\/p>\n\n\n\n

\"The-Gumroad-Blog-A-Penny-Saved-Psychological-Pricing\"<\/figure>\n\n\n\n

Over to you!<\/h2>\n\n\n\n

Implement the following techniques to your online store & run A\/B testing to see which makes the most output. Drop your views in the comment section below!<\/p>\n\n\n\n

Need help?<\/h2>\n\n\n\n

You can drop your query at support@webkul.com<\/span> or raise a ticket at Webkul UV Desk<\/a>.<\/p>\n\n\n\n

Until next time. \ud83d\udc4b<\/p>\n","protected":false},"excerpt":{"rendered":"

Finally, decided to buy that one product I was eyeing for a while now. With thrill added it to the cart, hit that checkout button. And there it is, one that makes the eye roll; shipping charge! Next? Press ctrl+w & wait for the site to have a free shipping scheme. A lot of you […]<\/a><\/p>\n","protected":false},"author":241,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2047,1328,841],"tags":[8821,3267,3266,8428,347,2687],"class_list":["post-218118","post","type-post","status-publish","format-standard","hentry","category-ecommerce-tips","category-shipping-marketplace-2","category-shopify","tag-ecommerce-business","tag-free-shipping","tag-free-shipping-for-marketplace","tag-free-store-pickup-service","tag-shipping","tag-shipping-methods"],"yoast_head":"\nHow to offer free shipping without affecting profit margin?<\/title>\n<meta name=\"description\" content=\"Offer free shipping on products using these quick tips & tricks to increase average order value, repeat customer rate & a lot more!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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