Who is this for?
Read this if you want to promote a free shipping option to customers that is still financially feasible. Free shipping doesn't have to be simply eating the costs. There are ways to make the margins tenable, which begin with establishing the economics that best fit your business model first.
We have all seen the industry reports the last couple years, so there is no reason to belabor it: Consumers want their orders quickly; 36% say they will shop elsewhere if it's not available. We previously wrote a play on implementing a profitable 2-day shipping program because of this urgent importance to operators.
But did you know that free shipping is twice as important?
It's true, consumers vastly prefer free shipping over fast shipping if given the two options.
- Several industry studies publish numbers anywhere between 75% and 80% of consumers will shop elsewhere if free shipping isn't available.
- Offering free shipping was a growth driver for Amazon long before Prime came on the scene. Before Prime, free shipping was regularly the preference for customers over fast shipping.
- Zulily became the fastest growing ecommerce business of all time in small part because the business was oriented around free shipping.
You need a free shipping program to compete. But a strategy that simply eats the costs of shipping is unsustainable as you grow, so you need a smarter plan. This play walks you through the ideas to achieve a profitable shipping program.