The surge in online retailers and an increasingly more budget minded consumer have resulted in an infinitely more competitive market. Individuals are no longer prepared to pay top dollar for a product. They are shopping around to find the best deals. Businesses have experienced to make a quantity of marketing changes in to attract customers. One such change is implementing a totally free shipping policy.
A current survey by PayPal and comScore says "43% of people surveyed didn't purchase items in their shopping carts because shipping charges were too high." As well, based on a Harris Interactive (2008) survey, "60% of these surveyed claim free freight is a reason they are more prone to buy online." Offering shipping free of charge can drastically increase store sales. In attempt to lower their shipping costs, many retailers will store many in a number of warehouses in a variety of locations across the nation and ship their orders straight to the shoppers. Others are negotiating shipping prices with companies in order to obtain better rates.
There are a number of ways that companies use free delivery as an effective sales and marketing tool. A company may offer shipping free of charge for orders in which the total purchase price is above a specified amount. Another fee shipping option companies will employ is offering the customer a shipping rebate by means of money, a price reduction on their next order, or perhaps a coupon or gift certificate. They can also offer free freight on specified items. Some retailers will even offer shipping free of charge on all items. The goal is to increase sales that will offset delivery cost losses. Others will give you free delivery to their members or as part of a rewards program. Sending electronic coupons to some customer's email providing shipping deals on a customer's next order is another effective approach to increasing sales. As well, businesses may offer free delivery through 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 quantity of traditional retailers that provide free freight 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 benefits of providing shipping totally free include a decrease in the amount of abandoned shopping carts, assists within the marketing a new product, improves customer loyalty, encourages shoppers to make a purchase, and helps sell excess products.
Internet shopping is one of 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 getting a great deal compared to driving to a local store. Research indicates that clients are much more likely make a purchase if free freight is provided. More individuals are not only demanding free shipping with their orders, they're expecting it. Offering free shipping in a variety of forms is an effective marketing and purchasers technique that most businesses are now using. To be able to compete for your business, retailers that have never offered free freight will need to start offering it. It seems that the disposable shipping trend is here now to stay.