The e-commerce industry is booming, now more than ever. With the Coronavirus pandemic leading to prolonged lockdowns and social distancing norms, most people are turning to online shopping for their daily necessities. As a result, online retail businesses are expanding rapidly. However, amidst this heightened competition, offering free shipping can be a game-changer for any online retailer. In this article, we discuss the benefits of offering free shipping for online retail.
1. Increases Customer Loyalty: If a business offers free shipping, customers are more likely to come back and shop from them again. A consumer study by comScore found that consumers are hesitant to make a purchase if they have to pay additional shipping costs. Offering free shipping instills a sense of trust and loyalty in customers, making them prefer the website over others.
2. Boosts Sales: Offering free shipping can lead to an increase in overall sales volume. It’s a psychological stimulus – customers feel like they are saving money by not having to pay for delivery. This perception of decreased overall cost encourages people to buy more items than they would usually purchase. Moreover, it can also prompt hesitant customers to finalize their purchase, who may have abandoned their shopping carts due to high shipping costs.
3. Enhances Customer Satisfaction: Free shipping is a perk that customers appreciate. It enhances customer satisfaction, thus leading to positive reviews and word-of-mouth referrals. Happy customers can result in an increased customer base, thereby, expanding the business. Consequently, an online retail merchant can observe a considerable rise in customer retention.
4. Offers Competitive Edge: With an ever-growing number of online retail businesses, free shipping is an excellent way to stand out. Offering free shipping can separate an online retail website from competitor sites. Additionally, the customer becomes more likely to choose the website they trust and have found the best value at.
5. Encourages Repeat Business: Free shipping doesn’t just boost initial sales but also contributes to repeat business. Customers who have had a positive experience with your website, provide great value and quality services, will surely return. Repeat customers are beneficial for businesses as they can serve as long-term assets, bringing in invaluable referrals and increased revenue.
In conclusion, offering free shipping is a powerful tool for any e-commerce business. In today’s highly competitive market, it’s not enough just to have attractive product offerings. The benefits of free shipping include; increased customer satisfaction and loyalty, increased sales and revenue, a competitive edge among competitors, and repeat business opportunities. If you’re an online retailer looking to gain a competitive edge and boost customer satisfaction, consider offering free shipping, which can yield immense benefits in no time.
