The surge in online stores and an a growing number of budget minded consumer have led to a much more competitive market. Consumers are no more willing to pay a premium price for a product. They are shopping around to get the best deals. Businesses have experienced to create a number of marketing changes in order to attract customers. One such change is implementing a free shipping policy.
A current survey by PayPal and comScore revealed that "43% of individuals surveyed didn't purchase items in their shopping carts because shipping charges were too high." Too, according to a Harris Interactive (2008) survey, "60% of these surveyed claim free shipping is a reason they're more prone to shop online." Offering shipping for free can drastically increase store sales. In make an effort to lower their shipping costs, many retailers will store their products in many warehouses in various locations across the nation and ship their orders directly to the customers. Others are negotiating shipping prices with companies in order to obtain better rates.
There are a variety of ways that companies use free delivery as an effective sales and marketing tool. A business offer shipping totally free for orders in which the total cost is over a specified amount. Another fee shipping option companies will employ is providing the client a shipping rebate by means of money, a discount on their own next order, or perhaps a coupon or gift certificate. They are able to also offer free freight on specified items. Some retailers may even offer shipping for free on all items. The aim would be to increase sales that will offset delivery cost losses. Others will give you free delivery for their members or as part of a rewards program. Sending electronic coupons to a customer's email providing shipping deals on the customer's next order is another effective approach to increasing sales. Too, businesses may offer free delivery throughout the country including straight to one's door step
Providing free delivery is an effective way to obtain repeat customers. Most online stores along with a growing number of traditional retailers that provide free shipping are offering it as free ground shipping. However, there now appears to be a new trend of offering better free delivery service. Some companies are offering free 2 day shipping and free overnight shipping.
The advantages of providing shipping free of charge incorporate a reduction in the amount of abandoned shopping carts, assists within the marketing something new, improves customer loyalty, encourages shoppers to create a purchase, helping sell excess products.
Online shopping is among the fastest growing retail sectors. Online shopping is one retail area which has not been impacted by a slow economy and rise in gas prices. Individuals are drawn to shipping offers simply because they feel they're obtaining a good deal compared to driving to a local store. Studies have shown that customers are more likely make a purchase if free freight is provided. More individuals are not only demanding free freight using their orders, they're expecting it. Offering free freight in a number of forms is an effective marketing and sales technique that many businesses are now using. In order to compete for your business, retailers which have never offered free shipping will have to start offering it. It appears that the free shipping trend is here to stay.