Why All Online Retailers Should Consider Free Shipping Offers
September 30, 2008 5:05 am adwordsThe numbers of shoppers turning to the internet for their
shopping has been going up year after year. At the same time,
online retailers have been working hard to come up with ways
to turn those browsers into buyers. One tactic that both
retailers and consumers seem to like is free shipping offers.
There are several types of free shipping offers to choose
from, and once a retailer decides to offer free shipping, they
need to promote that offer to their customers. The purpose of
this article is to inform online retailers about the potential
benefits of including free shipping as part of their online
marketing strategy.
It has been shown with website statistics and opinion polls
more than half of consumers are more likely to shop online
with a retailer that offers free shipping than one that
doesn’t. There used to be a time when online shoppers didn’t
really factor in the price of shipping into their purchasing
decisions. With the recent rise in shipping cost, and more
experienced online shoppers, the cost of shipping is now plays
a major role in consumers deciding which website to shop at,
and whether to shop online at all. It is now common to see
online retailers offering free shipping on large items like
big screen TVs. The one downside to offering free shipping is
that the retailer is stuck picking up the bill. This is what
led internet retailers to develop several different types of
free shipping offer.
There seems to be three different types of free shipping
offers that are popular with online retailers. A small amount
of retailers offer free shipping on everything in their store.
This definitely encourages people to buy, but for this to make
sense they need to be selling items where the profit margin
far exceeds the price of shipping. The second and most popular
type of free shipping offer involves a set minimum purchase
amount. This ensures that the retailer’s shipping costs are
covered, encourages shoppers to spend more, and the shopper is
happy because they are still getting a deal. The third way
retailers can offer free shipping is to only offer free
shipping on certain items. This can be effective for retailers
who want to encourage shoppers to buy certain items that will
still be profitable even when the cost of shipping is factored
in.
After a retailer has chosen what type of free shipping offer
they want to offer, they have to let their customers know
about the offer. There are several ways to promote a free
shipping offer. The single most important way to do this is to
advertise this on your home page. I recommend going further
than this and making a place on every page of your website to
promote your free shipping offer, this way it will act as a
reminder throughout a visitors entire shopping experience.
Many retailers are also promoting their free shipping offers
outside the confines of their own website on their banner ads,
Adword campaigns, and third party websites. Promotion is
important, because a a free shipping offer that no one know
about isn’t going to do anyone any good.
The benefit of including free shipping as part of an online
marketing campaign is an almost guaranteed increase in sales.
The challenge for internet retailers is to choose the right
type of free shipping offer that encourages sales, but does
not eat into a companies profits. Proper promotion of a free
shipping offer will play a major role in its success. I
recommend that every internet retailer should consider testing
out a free shipping offers
