Does Free Shipping Increase Sales?

If you’re a business that sells online, a question might’ve popped into your mind: does free shipping increase sales?

The concise and direct answer is yes. But, this sales increase might not become immediately visible. Moreover, there are different approaches and factors of free shipping, and not all suit your business.

Keep reading to discover how free shipping can help you gain more new customers who will become regulars. 

Reasons Why Customers Abandon Shopping Carts

Imagine the following situation: you decided to buy some things you need. You visited the seller, added stuff to your cart, and are ready to finalize the purchase and have them delivered to your doorstep. All giddy and happy, you arrived at the checkout point and noticed an additional shipping fee. That’s when the doubt started to kick in. Do you actually need all these items? Are they worth an additional $XY for shipping? Instead, should you go to the store and buy these items without paying extra for delivery? 

It’s a fact – consumers are getting more used to the free shipping option, so they rethink the complete process when they come across a seller without free delivery options. 

So, if you ask yourself, “can free shipping increase sales?” the answer’s still yes. An article from Rejoiner explains why customers abandon their cart, with unexpected shipping costs being the no.1 reason with a whopping 56% of the studied users! Another 32% of shoppers decided that the overall price was too expensive. In addition, 16% were dissatisfied with the delivery options. These numbers show that shoppers care a lot about shipping options and flexibility. They care so much that they’re ready to shop at your competitors, even at a slightly higher price, if they offer a free shipping option. 

Gaining An Competitor Advantage 

It’s safe to conclude one thing: if your competition has free shipping options and you don’t – you’ll lose customers. Statistics claim that the average customer checks (at least) three sites before committing to a purchase. So, if the previous two competitors had free shipping options, your business would fall out of the question quite soon. 

But, if you reverse the cards and you’re the one that offers free delivery, it’s clear where the customers will rather make their purchase.

So, not only can free shipping increase sales, but it can also rank you higher among your competitors. 

If you offer free shipping options, another great way to gain an advantage over the competition is to flaunt it in your meta description. That way, users will immediately know there are free shipping possibilities, resulting in more visits and prospective buyers. 

Free Shipping Might Increase The Overall Sum

Another way free shipping can increase sales is via order value conditions. Order value conditions for free shipping is one of the most popular eCommerce strategies, and it’s for a reason. 

UPS discovered that around 58% of their users added more items to their carts to qualify for free shipping. BigCommerce reported an increase of 30% in order value when offering free delivery.

There isn’t any deep psychology behind this – people want to get something else instead of paying for delivery. It can be an item they previously discarded or something small and symbolic, but it’s the thing they wouldn’t buy in the first place. So, once again, we might conclude that strategies of free shipping increase sales. 

Free Shipping Can Increase Brand Awareness 

Having a business isn’t enough, especially today when millions of companies work hard to stand out in the crowd. 

You must instill feelings of familiarity and trust within your target audience to gain more traction and keep it consistently growing. 

So, you must work to establish brand awareness among your customers. 

Offering free shipping to increase sales is one of the best ways to improve brand awareness. When your business offers free shipping, shoppers will remember that for future purchases!

Moreover, they’re more likely to recommend you to their friends and family for their shopping occasions. 

When you provide free shipping, you also increase your brand value. Your customers will never feel you’re taking more money than needed, so their shopping experience will automatically deem more satisfying. 

How Much Can Free Shipping Increase Sales?

So, now that we know that free shipping can increase sales, the question remains – how much? 

Let’s look at some statistics:

• Stitch Labs (now acquired by Square) claimed that retailers who offer free shipping have a 10% increase in sales
• Big Feet PJs reported an order increase of around 50% when they provided free shipping.
• NuFACE test-added free shipping and had a 90% order increase.

The same research by NuFACE demonstrated that approximately 60% of e-commerce shop owners claim free shipping increases sales and is one of their most successful marketing tools. 

So, it’s no wonder that most online businesses offer various ways of free delivery. 

Summary

This article’s main takeaway is that shoppers love free shipping and that free shipping increases sales.

It’s true – in your early beginnings, free shipping can seem tricky and even costly. But, in the long run, you will gain more loyal customers who will always opt for your business to shop from instead of your competition, which doesn’t offer free shipping – even if they offer slightly higher prices!

Shipping fees are a leading factor in whether customers will purchase online. If the shipping costs are too high, they might buy what they need in a physical store instead.

Moreover, most shoppers are okay with slower shipping via their regular national post if it’s free. After all, you can offer paid shipping options for special requirements, such as next-day delivery. 

For more details, feel free to reach out to us – we’d be happy to answer all your doubts and questions. 

Happy selling!