Whether to offer free shipping or not is the question every Amazon seller has right? Free shipping is an incentive for customers to complete a pending purchasing process.
There is no doubt that offering something for free will be appealing for shoppers. It’s definitely a strategy worth considering.
Let’s take a look that offering free shipping really worth for Amazon sellers or not.
WHY DOES FREE SHIPPING MATTERS?
There are many reasons that you as a Amazon seller really need to consider free shipping:
1. COMPETITIVE ADVANTAGE
Think like your customers, if you head to Amazon to purchase products, you’ve analyzed all the factors that you really need and decided to make a purchase.
Once you’ve decided to make a purchase, the same product with kind of same features you expect, one has free shipping and other won’t.
Now, think about what you do as a customer. Obvious, you end-up purchasing the products which have free shipping.
Free shipping will allow you to stand out from the crowd, allowing you to build extra visibility which differentiates you and your competitors.
2. CART ABANDONMENT
The most obvious reason why shoppers abandon their cart, is because of the unexpected shipping fee after adding the product to the cart.
This will make your customers get annoyed, in turn may never shop from your site. However, offering free shipping, your customers will never face such scenarios and thus resulting in fewer shopping cart abandoned rates.
Even if some buyers do not mind paying for delivery, they will be easily convinced to extend their shopping carts by adding more items as they are more willing to spend.
3. INCREASE SALES
85% of consumers prefer free shipping over fast shipping. According to Wharton study, 61% of consumers are “somewhat likely” to cancel their purchase if free shipping is not offered.
According to a comScore survey, 55% of online shoppers are likelier to abandon shopping carts that don’t offer free shipping.
Driving traffic and attracting customers is every Amazon sellers ultimate goal while selling. Free shipping makes that easy by driving customers and hence increases your sales.
While it’s not guaranteed that you’ll make additional sales and revenue for simply offering free shipping, over half of the retailers out there do it.
4. CUSTOMER LOYALTY
Offering free shipping is directly associated with customer retention. It not only help your business acquire new customers but also will incentivize customers to continue buying from your store.
It gives a great indication to your customers that you’re keeping in mind what they really want and hence they will turn loyal to your brand.
5. KEY FOR MARKETING
When you offer free shipping, you’ll obviously want to advertise it to your customers. And, advertising about your free shipping offer will automatically divert more traffic to your store.
Also you can retarget your old customers with this promotion can be a simple yet effective way to boost sales and revenue.
It may be called ‘free’ shipping, but it’s gonna cost you. However, offering free delivery will attract customers and drive more sales on Amazon.
Offering free delivery has some drawbacks, so it’s essential to consider all your options and make sure it’s right for your business before making any decisions.
Considering the benefits or the drawbacks is totally up to you as a Amazon seller. Likewise free shipping, selling restricted categories also have some hidden benefits.
Those restricted categories have the benefit of lesser competition with high demand products. But ungating those restricted categories is quite tedious.
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