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About the Author
Mitch (@mitchellharper) is the co-founder and CEO of BigCommerce. Way back in 2007 he built what eventually became BigCommerce as you know it. Today he runs the company alongside Eddie and along with our 100+ team members, is passionate about helping businesses succeed with e-commerce. Mitch spends time between our Sydney and Austin offices and is giving the keynote at TechConnect 2012 in Sydney on April 19th. |
If you don’t offer free shipping from your online store then you’re missing out on a substantial amount of revenue. While you might initially think that offering free shipping will erode most or even all of the profit in the order, I can tell you that it wont – if you use the simple formula and strategy I’ll share with you in this video.
Using free shipping as a motivator for customers to buy from you can help increase your average order value by up to 30% in just a few short months. You simply need to workout your average order value, your average shipping cost, and offer free shipping on your average order value + 10%, or whichever amount covers your average shipping cost and provides enough of a profit to slightly increase your average order value.
If you repeat this process every 3-4 weeks, your average order value will increase by 30% or more in just a few months. The basic idea here is that a certain percentage of your customers will be willing to spend more with you on each transaction in order to “trigger” the free shipping option you setup. This creates a win-win situation: your customers get free shipping and you increase your average order value resulting in a better bottom line for your business.
This video is the fourth of many which we’ll be publishing on our new YouTube guru channel, BigCommerceDotCom. Check it out and make sure you subscribe so you don’t miss future videos.
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