Definition: Free shipping is an increasingly-popular option for online shopping, where customers do not have to pay an additional shipping charge. Free shipping is attractive to customers who appreciate simple pricing structures, which in turn makes it a potential competitive advantage for online businesses.
Shipping options play a pivotal role in an online shopper's decision of where to spend their hard-earned dollars:
Someone has to pay for the cost of delivering goods to consumers. The ultimate challenge for online businesses is how to affordably offer free shipping and balance the expense?
Online businesses can also reduce overhead through established relationships with shipping vendors. Free shipping is also a long-term play: taking a short-term loss can be a smart sacrifice with a big-time payoff down the road if the policy generates loyal customers and brand advocates.
Free shipping can be an effective marketing tool that aims to benefit both the consumer and the retailer. There are many ingenious ways to generate revenue and keep consumers returning to a particular online store. The majority of businesses choose to offer free shipping in conjunction with additional delivery options such as overnight express delivery at a cost to the consumer. Additionally, the delivery campaigns below offer ways to increase sales: