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5 Ways To Offer Free Ecommerce Shipping On Your Store

sahil bajaj

Sahil Bajaj

Senior Specialist - Marketing @ Shiprocket

April 1, 2024

6 min read

One of the most frequent questions that every eCommerce store owner has to deal with is whether your online store is ready for free eCommerce shipping or not. Its answer might need a lot of discussions. Obviously, you want to offer the best services to your customers, but you cannot run into loss just for the sake of your customers. After all, you are here to do business and earn profits.

Whenever you are on a verge of deciding about getting free eCommerce shipping, you need to check whether it is feasible or not. It would be really silly on your end if you offer free shipping for a product that is worth only Rs. 50 or Rs. 100. The shipping will cost you a similar amount and it just does not make sense.

However, on the second hand, you cannot ignore the huge benefits that are rendered by offering free shipping. Psychologically, it triggers your customer to buy more products, as free shipping makes the overall difference in the final cost. Also, it makes you stand out among your competitors. So, what can be done to initiate free eCommerce shipping in your store without any loss in your business? As you read further, you will learn some tricks to initiate the same and understand whether the strategy is right for your business or not. We have also shared the pros and cons of offering free shipping in eCommerce. Read on to find out!

offer free shipping to your buyers

5 Tips to Provide Free Shipping without Incurring Loss

Here are some tips to help you provide free shipping to your customers without adding much to your expense:

Set Minimum Threshold

Instead of offering free shipping on all products, you can set a minimum purchase amount. This way you are at a lower risk of facing any loss. Also, you indirectly encourage your customers to buy more. For example, if you have set Rs. 1500 as the minimum purchase amount for free shipping, there are huge chances that a customer stuck at Rs. 1000 will buy products worth 500 or more, just for the sake of free shipping.

Selected Product Or Category

You can offer free shipping on selected products or categories where your profit margin is higher. The higher margin can easily bear the shipping cost. Also, it will surely increase the sale of that product.

Promotional or Festive Offers

The festive season is the most productive season for any eCommerce store. If year-long free shipping is not your cup of tea, then you can always choose a certain time or festive season, where you can offer promotional offers of free shipping. Also, by offering free shipping promotional offers, you can witness a growth of around 15-25% in your sales.

Flat Rate Shipping

Although, this does not come under “free eCommerce shipping”, but opting for a flat shipping rate can yield good results. For example, you can fix Rs. 50 or Rs. 100 as the shipping rate for all orders.

Include Shipping Cost Within Product Cost

This is one of the last yet most commonly used tactics for attracting more customers. You can include shipping charges in the initial product cost and then offer free eCommerce shipping. This way, you build you stand out among your competitors by offering free shipping within the MRP.

Pros and Cons of Offering Free Shipping in eCommerce

Let’s see the advantages and drawbacks of offering free shipping.

Pros of free shipping in eCommerce:

  1. Lowers Cart Abandonment Rate – It has been noticed that a large number of shoppers abandon their carts because of high shipping rates. As per a survey, 48% of online shoppers leave their cart at checkout if they see any kind of additional fee, taxes or shipping charges. Free shipping can increase their chances of ordering items from your store.
  2. Builds Customer Loyalty – Shoppers look forward to shopping from stores that offer free shipping. Thus, it can lead to repeat purchases and build a loyal customer base. Providing free returns and fast deliveries can strengthen it further.
  3. Gives an Edge Over Competitors – As many businesses charge for shipping, you can get an edge over them by offering free shipping to your customers. It can act as an excellent selling point. It has been observed that 59%shoppers make buying decisions based on whether or not they are getting free shopping.
  4. Higher Conversion Rate – As your cart abandon rate goes down, you get an edge over your competitors and witness repeat purchases. This way your conversion rate will go up.

Cons of offering free shipping:

  1. Increase in Business Expenses – When you provide free shipping to your customers, you have to bear the cost on your own. This increases the business expenses and decreases the profit margins.
  2. Delay or Damage – In order to lower your shipping cost, you may look for budget shipping options. This may delay your shipments or even damage the goods in transit.
  3. Customer Dissatisfaction – Your company’s reputation is likely to get affected when you choose budget shipping options. Delayed or damaged deliveries and inability to track orders in real time can lead to customer dissatisfaction.
  4. May Cause Sustainability Issues – When customers get free shipping, they are likely to order more frequently and even order smaller items separately. This can increase your carbon footprint.

Should You Offer Free Shipping or Not?

Before you take the decision to offer free shipping, it is suggested to evaluate the advantages and disadvantages associated with the same. In addition to that, mull over the below mentioned questions:

  • Is there anything apart from free shipping that can help you attract more customers and boost sales?
  • Is your target audience keen on getting free shipping or are they willing to pay the shipping cost? 
  • Can you use bundle shipping option in which your customers require waiting for a few days so that you can ship their orders along with a larger shipment?

Conclusion

The above is just a glance of options that you can offer free shipping, without bearing any loss in your business. You can choose any of them or simply try and test each at a time to see which shows better results. Also, you can opt for any automated shipping solution like Shiprocket, which offers you low rates shipping services. This automatically decreases the shipping cost. Remember, you need to take into account the benefits of both your business and consumers. It is also important to consider the disadvantages of free shipping and assess whether it is a good option for your business or not. The aforementioned points will help figure it out. Other than this, you can get creative and discover any similar choices.

If you know other tactics, we would love to know. Let us know about it by adding a comment below.

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One thought on “5 Ways To Offer Free Ecommerce Shipping On Your Store

  1. Thank you for providing such an informative and engaging blog post. I enjoyed reading your insights and the way you presented the information.

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